The Recipient of a Tax-Free Stock Dividend Will Have a Zero

question 82

True/False

The recipient of a tax-free stock dividend will have a zero tax basis in the stock.
The recipient must allocate a portion of the basis from existing stock.

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Definitions:

Tube Feedings

A medical procedure to provide nutrition to individuals who cannot obtain nutrition by mouth, utilizing a tube placed in the stomach or intestine.

Schizophrenia

A complex, long-term mental health disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Acute Dystonic Reaction

A sudden, severe involuntary muscle contraction, often a side effect of certain psychiatric medications.

Diphenhydramine

An antihistamine drug used to relieve symptoms of allergy, hay fever, and the common cold, as well as for inducing sleep.