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Aberdeen Asia-Pacific Income Fu Message Board

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  • axzl axzl Feb 10, 2000 12:46 AM Flag

    Dividend cut?

    "By paying out of principal it's turning after
    tax money into taxable dividends", I don't believe
    that is correct. It is called "return of capital" and
    is listed as such on Schedule D of your 1040 tax
    form as such. Return of capital lowers your cost basis
    that you paid for the stock. On Schedule B you list
    the actual dividend you received not including the
    return of capital.

    Hope this helps.

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