Question
Imani purchased 200 shares of Grey Rock Mutual Fund in 2020 for $1,600. Although she received distributions, the fund had no earnings or profits for
Imani purchased 200 shares of Grey Rock Mutual Fund in 2020 for $1,600. Although she received distributions, the fund had no earnings or profits for the next three years. She received a Form 1099-DIV reporting a $900 nondividend distribution for 2021, and she received a Form 1099-DIV reporting an $800 nondividend distribution for 2022. As a result of these distributions, Imani's 2022 return should report:
A. $100 capital gain.
B. $100 dividend income.
C. $800 capital gain.
D. $800 dividend income.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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