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Level 1
February 15, 2024
Question

On Form 1065 where do I enter information from a 1099-DIV, Box 3 (Nondividend Distributions)?

  • February 15, 2024
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1 reply

dascpa
Level 11
February 15, 2024

As dividends are income (P&L), nondividend distributions are a return of capital (balance sheet).  You would be lowering the investment balance by the amount of monies returned to the taxpayer.  Therefore there is no "direct entry" as there is in a 1040, since the 1040 doesn't report the asset but a 1065 does.