Syncora Holdings Ltd. (fka SYCRF)

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What Is a Non-Taxable Distribution?
A non-taxable distribution is a payment to shareholders that is similar to a dividend but that represents a share of a company's capital rather than its earnings. In any case, it's not really "non-taxable." It's just not taxed until the investor sells the stock in the company that issued the distribution.


Stock received from a corporate spinoff may be transferred to stockholders as a non-taxable distribution. Dividends paid to cash-value life insurance policyholders are considered non-taxable distributions of capital.


KEY TAKEAWAYS
A non-taxable distribution may be a stock dividend, a stock split, or a distribution from a corporate liquidation.
In any case, it is taxable but not until you sell the stock of the corporation that issued the distribution.
The non-taxable distribution is reported to the IRS as a reduction in the cost basis of the stock.
more:
https://www.investopedia.com/terms/n/nontaxable-distribution.asp