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extraordinary dividend

Defined in 1 dictionary — U.S. Code

United States Code

26 U.S.C. § 1059 — for purposes of this section

The term “extraordinary dividend” means any dividend with respect to a share of stock if the amount of such dividend equals or exceeds the threshold percentage of the taxpayer's adjusted basis in such share of stock.

26 U.S.C. § 263 — under this subtitle

For purposes of this subsection, the term “extraordinary dividend” has the meaning given to such term by section 1059(c); except that such section shall be applied by treating the amount realized by the taxpayer in the short sale as his adjusted basis in the stock.

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