### Question
How is the "total excess distribution" defined?


### Answer
The term **total excess distribution** is defined in *26 U.S.C. § 1291* as follows -

> the excess (if any) of—


(i) the amount of the distributions in respect of the stock received by the taxpayer during the taxable year, over


(ii) 125 percent of the average amount received in respect of such stock by the taxpayer during the 3 preceding taxable years (or, if shorter, the portion of the taxpayer's holding period before the taxable year)

#### Citation:
  - *26 U.S.C. § 1291*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART VI-TREATMENT OF CERTAIN PASSIVE FOREIGN INVESTMENT COMPANIES > Subpart A-Interest on Tax Deferral**

