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According to the IRS, all inherited property is considered long term.

Correct.

However, what about the reinvested dividends that I received after I inherited the funds/stocks?

Those are additional purchases of those stocks/funds after you inherited them.

Do the gains/losses on the reinvested dividends need to be broken down into long term and short term, as they would be if I had purchased the original funds/stocks?

Yes. Each reinvestment is a separate purchase that will have it's own holding period. Those reinvestments are not inherited.

--Peter
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