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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

A nondividend distribution is a distribution that is not paid out of the earnings and profits of a corporation. Any nondividend distribution is not taxable until the basis of the stock is recovered; however, a record needs to be maintained. After the basis of your stock is reduced to zero, the nondividend distribution must be reported as a capital gain.

Enter amounts from box 3

To maintain a record of the nondividend distributions received for the applicable tax year, use the Record of nondividend and liquidating distributions statement dialog on the Info screen in the General folder.

Enter any taxable nondividend distributions

If any box 3 amounts are taxable:

1. Go to the Income folder.
2. Go to either the B&D screen or the Broker screen. Only use the Broker screen if you want to enter a consolidated 1099.
3. Open the Schedule for detail statement and complete these fields:
   • Quantity sold / Stock/Other Symbol / Desc: Use the Quantity Sold, Stock/Other Symbol, and Desc fields to describe the distribution. These fields will be combined into one field on the 8949.
   • Date Acq'd / Date Sold: Enter acquired and sold dates in the MM/DD/YY format.
   • Sales Price: Enter the total sales price of the nondividend distribution.
   • Cost/Basis: Enter the original cost or basis of the nondividend distribution.
   • Gain-Loss: The gain or loss for the sale automatically calculates based on the Sales Price, Cost/Basis, and Adj to G/L entered.
4. For fields that were skipped, complete them as needed for your client.

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