A shareholder's basis in property distributed as a dividend is its fair market value.

Name: A shareholder's basis in property distributed as a dividend is its fair market value.
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According to IRS regulations, a shareholder's basis in property distributed as a dividend is its fair market value at the time of distribution. This is known as "dividend-in-kind" and is treated as a taxable event for the shareholder.

A Shareholder's Basis in Property Distributed as a Dividend Is