Non-taxable Distribution

Description and Definition of Non-taxable Distribution

A dividend received from a company as a return of the shareholders investment in the stock. Non-taxable distributions are tax free but you must reduce your basis in the stock by the amount of the distribution. Your gain or loss will be calculated using the adjusted basis when you sell the stock.

Resources

See Also

Further Reading

• Non-taxable Distribution in the West's Tax Law Dictionary
• Non-taxable Distribution in “A Dictionary of Taxation”