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http://boards.fool.com/reinvested-dividends-increase-your-cost-basis-30342927.aspx
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| Subject: Re: Stock cost basis for ESOP & DRIP | Date: 10/26/2012 1:26 PM | |
| Author: irasmilo | Number: 116844 of 118626 | |
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Reinvested dividends increase your cost basis. Including them has the potential to reduce your taxes. If the gross sale is within the 0% bracket for capital gains, there isn't going to be any actual tax savings. With 3000+ shares at a current price of >$50, the sale proceeds will exceed $150K. That's outside of the 25% tax bracket if you take the easy way out and assume $0 cost basis (ignoring other income and deductions/exemptions). It will definitely be worth your while to determine the correct cost basis for your shares. Ira |
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