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Financial Planning / Tax Strategies


Subject:  Re: Tax Question Date:  3/18/2000  1:29 AM
Author:  RooCat Number:  31998 of 127637

This is the first year I've purchased stocks, and already anticipating next year's return. Question: if I
so not sell any stock and keep reinvesting the dividends, do I pay taxes on the amount that is
reinvested? (Everything is long term hold.)

You have to pay income taxes on the dividends (and capital gains distributions if dealing with any mutual funds) whether or not you reinvest them. You might want to read about various tax issues under the FAQ just to educate yourself.
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