extraordinary dividend
Defined in 2 places of the United States Code.
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.
Source
- 1994–present26 U.S.C. § 263Internal Revenue Code · Capital expenditures · under this subtitle
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.
Source
- 1994–present26 U.S.C. § 1059Internal Revenue Code · Corporate shareholders basis in stock reduced by nontaxed portion of extraordinary dividends · for purposes of this section