Nondividend distributions

[Bonnie]

I have a 1099-DIV with nondividend distributions, is this the same as non-taxable distributions? Or is this something else. I'm just not understanding what this is? Thanks

[BP.]

Box 3? Check out TTB p. 6-4 for info.

[Roland Slugg]

"Nondividend distributions" in Box 3 of form 1099-DIV represent a return of capital and are usually not taxable. They reduce the shareholder's basis in his shares, and if the amount ever exceeds the remaining basis, the excess is taxable as a LT or ST capital gain.