Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- NONTAXABLE DISTRIBUTION
A dividend you receive from a company, not from its earnings but as a return of your investment in the stock. If you receive a nontaxable distribution, you must reduce your basis in the stock by the amount of the distribution. When you sell the stock, your gain or loss will be calculated using the adjusted basis.Back