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Why are nondividend distributions listed on Form 1099-DIV?

April 26, 2017distributions form nondividend

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Why are nondividend distributions listed on Form 1099-DIV?

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Nondividend distributions are distributions from your fund which are a return of capital to you. You must reduce your cost (or other basis) by the amount shown in Column 3. However, if you get back all of your cost (or other basis), you must report future nontaxable distributions as capital gains even though Form 1099-DIV shows them as nontaxable. Review Publication 550 for assistance in determining if the amount shown in Column 3 is truly nontaxable to you.