### Question
How is the "extraordinary dividend" defined?


### Answer
The term **extraordinary dividend** is defined in *26 U.S.C. § 1059* as follows -

> any dividend with respect to a share of stock if the amount of such dividend equals or exceeds the threshold percentage of the taxpayer's adjusted basis in such share of stock

#### Citation:
  - *26 U.S.C. § 1059*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter O-Gain or Loss on Disposition of Property > PART IV-SPECIAL RULES**

