### Question
What is the definition of excess distribution?


### Answer
The definition of **excess distribution** is as follows in *26 U.S.C. § 172*:

> the excess (if any) of—


(i) the aggregate distributions (including redemptions) made during a taxable year by a corporation with respect to its stock, over


(ii) the greater of—


(I) 150 percent of the average of such distributions during the 3 taxable years immediately preceding such taxable year, or


(II) 10 percent of the fair market value of the stock of such corporation as of the beginning of such taxable year

#### Citation:
  - *26 U.S.C. § 172*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

