All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎02-19-2018

Non dividend distribution

I received a 1099B dividend statement that showed I received $100 non dividend distribution from EMD.

I bought 300 EMD on 5/22/2009 for $3926 and sold 300 EMD on 9/5/2017 for $4704.

Should I reduce the cost basis of EMD by $100 when I report the capital gains on Schedule D?

Highlighted
Associate (Neighbor)
Posts: 121
Registered: ‎01-21-2014

Re: Non dividend distribution

Good Afternoon and welcome to the Community

 

If the 1099B has the cost basis and sales as the figures you stated, you do NOT change anything.  That would all be figured in my the financial institution that generated the 1099B

 

I hope this helps.

Cindy K
Pioneer
Posts: 2
Registered: ‎02-19-2018

Re: Non dividend distribution

Thank you.

Associate (Pioneer)
Posts: 14
Registered: ‎02-26-2016

Re: Non dividend distribution

A Nondividend distribution is a return of capital. It's basically a return of your original investment. You will reduce your original basis by that $100 if the Broker has not already done so.

 

 

Diane Phelan, EA, LTC, MST

Tax Pro Review Preparer

Portland, Oregon