The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Capital gains tax question||Date: 2/11/2000 9:55 PM|
|Author: pmarti||Number: 28377 of 120795|
<< Thanks Bob, I was almost sure of this, but brother-inlaw bet I was wrong. If you reinvest the dividends then there is no tax either( right )? >>
Bzzzz. And you were doing so well <g>.
Dividends are taxable income in the year issued whether you take them in cash or DRiP them. If you reinvest, the dividend, which you paid tax on, is your basis in the shares purchased.
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