Distributions That Are Not Dividends Are a Return of Capital

question 14

True/False

Distributions that are not dividends are a return of capital and decrease the shareholder's basis.Once basis is reduced to zero, any excess is taxed as a capital gain.

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Definitions:

Phone Services

Various telecommunications services provided by carriers, including voice calls, text messaging, and internet access, through mobile or landline phones.

Radio-Based Wireless Technology

Communication technologies that rely on the transmission of data through radio waves over the air, such as Wi-Fi and cellular networks.

Bluetooth

A wireless technology standard for exchanging data over short distances from fixed and mobile devices, creating personal area networks.

Output Devices

Hardware components that display or project information from a computer or other electronic device to the user, including monitors, printers, and speakers.