Distributions by a corporation to its shareholders are presumed to be a return of capital unless the parties can prove otherwise.

Name: Distributions by a corporation to its shareholders are presumed to be a return of capital unless the parties can prove otherwise.
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Distributions by a corporation to its shareholders are generally presumed to be dividends, which are taxable, unless it is shown that they are a return of capital.

Distributions by a Corporation to Its Shareholders Are Presumed to Be