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:

Diaphoretic

Refers to sweating extensively as a medical symptom or physiological response.

Intoxicated

A state of being impaired or under the influence of alcohol or drugs.

Substance Addiction

A complex condition characterized by compulsive drug use despite harmful consequences, reflecting a neurological impairment leading to behavioral challenges.

Tolerance

The ability or willingness to tolerate the existence of opinions or behavior that one dislikes or disagrees with.