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051267944
Returning Member

What is tax rate for ..Non dividend distribution ,same for section 199a dividends. ?

 
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tagteam
Level 15

What is tax rate for ..Non dividend distribution ,same for section 199a dividends. ?

The tax rate is zero provided you have sufficient basis.

 

Nondividend distributions are a return of capital and not taxable; the distribution merely reduces your basis. To the extent the distribution exceeds your basis, you have capital gain (taxable at capital gain tax rates).

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tagteam
Level 15

What is tax rate for ..Non dividend distribution ,same for section 199a dividends. ?

The tax rate is zero provided you have sufficient basis.

 

Nondividend distributions are a return of capital and not taxable; the distribution merely reduces your basis. To the extent the distribution exceeds your basis, you have capital gain (taxable at capital gain tax rates).

View solution in original post

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