No, don't delete it. A non-dividend (box 3 of 1099-DIV) distribution is nontaxable because it is a return of capital. The treatment of the distribution is the same if it is for $6 or $600.
The amount of a non-dividend distribution is usually smaller your basis. In the rare case in which the distribution is more than the basis, the shareholder must reduce their cost basis to zero and report the excess amount of the distribution as a capital gain on IRS Form Schedule D.
Once the adjusted cost basis of your stock has been reduced to zero, any further non-dividend distribution is a taxable capital gain that you report on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D, Capital Gains and Losses. @cocoanuts
Keep track of your cost basis. If the basis is already zero and you need to report a capital gain, search for investment sales, use the jump to link and use the 1099-B entry to report a capital gain. Where do I enter a capital gain?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
