Definition of «nontaxable return»

A nontaxable return is a type of investment that does not generate taxable income. This means that any earnings or gains from this investment are exempt from federal and state income taxes, making it an attractive option for those looking to minimize their tax burden.

Sentences with «nontaxable return»

From a tax perspective, any distributions from the Fund that might occur will be characterized as nontaxable return of capital (lowering the investor's cost basis). (proshares.com)
This rule does not apply to nontaxable return of capital distributions. (fairmark.com)
The portion of each withdrawal that is subject to taxes and penalties is prorated based on the portion of the total account balance that comes from earnings; the rest is a nontaxable return of contributions. (baltimoresun.com)
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