Got a 09 1099-div with an amt in box 3 (nondividend distributions), 1a, 2a, 2b, Understand those last boxes but what about box 3 amt? Usually a sale is involved with this. Any help would be appreicated.
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This is generally a distribution that does not come from earnings. When you receive this type of distribution you are generally considered to be getting some of the money you invested in the company. The Service used to call them nontaxable distributions but now calls them non dividend distributions. Take the amount in box 3 and subtract the amount from the total basis of the shares. The only time you have to report anything from a nontaxable distribution is when the amount exceeds your basis in the mutual fund shares. You report any additional amount as capital gain on Sch D.
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