A distribution from a corporation to a shareholder will always be treated as a dividend for tax purposes.

Name: A distribution from a corporation to a shareholder will always be treated as a dividend for tax purposes.
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A distribution from a corporation to a shareholder can be treated as a dividend, return of capital, or capital gain, depending on the corporation's earnings and profits and the shareholder's basis in the stock.

A Distribution from a Corporation to a Shareholder Will Always