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Business & farm
Hi @Rick19744 what happens if a company has net income but returns both the profit and original investment capital back to a shareholder? I thought the IRS documentation stated that this case would fit the definition of a non-dividend, but that any profit/amount beyond an investor's cost basis would be taxable. It appears that investment capital goes into a company's balance (cash assets) but not the E&P.
‎June 30, 2020
7:42 AM