IRS Form 1099-DIV: How to Report Nondividend Distributions
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- Опубліковано 4 чер 2023
- Form 1099-DIV is filed to report dividends and other distributions.
Generally, most taxpayers will receive a Form 1099-DIV with only boxes 1 & 2 completed for ordinary and qualified dividend income.
If a shareholder receives a Form 1099-DIV completed with Box 3 for nondividend distributions, the taxpayer received a distribution of property that exceeds the corporation's earnings and profits (E&P).
Nondividend distributions are not taxable to the shareholder because they are treated as a return of capital. The amounts received are a reduction to the shareholder's cost basis in their shares.
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THANK YOU, THANK YOU, for posting this video.
I'm a small investor, unknowingly bought a stock last year that pays Non-Div distribution. Was at a total loss of understanding how BASIS is kept over years for this situation. To my logic, the government wants their money now. . . . hard to accept how this works. Now know what I need to do to document BASIS for these Non-Div Distributions in preparation for the year actually sell the stock.
This is way over my thought level, so will sell this stock very soon. so I can get back to using a self-created spreadsheet to do simple taxes on normal Dividends. (posted that video in 2023).
That is the UA-cam family, . . . we each give, and we each receive knowledge (by creating videos).
Here's my situation. I have stock I've owned for the last year that paid nondividend distributions. I haven't sold it and I plan on keeping it this year. When I do eventually sell it, do I have to go back through every year's 1099-DIV and add up all the NDDs and record the final cost basis on the 8949 for the year it was sold?
Hi Jason, what about a 1099DIV only 1b amount, no 1a or any boxes??
Could you please explain the form 8990 and 163(j) in form 1065 in details
Only assholes have partnerships. Drop them as a client and if it's you, say sorry to yourself for being one.
If you ever use the words “strait forward” again when referring to the American Tax system, we got beef.
lol fair enough
I have an idea… 🤫 we shut it down
How many accounts actually reduce the cost basis from the 1099-DIV and just ignore it on the 8949? Hint: most all of them. Another hint: IRS never figures it out.
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You are welcome.