Could someone please explain why DRiPs are such a tax nightmare? Can't I just keep a "cost-average" and then use that number to determine my gain or loss when I buy or sell?Thanks!Some consider it a nighmare because each DRIP event has to be tracked individually for tax reporting purposes, as each dividend reinvestment is an individual stock purchase. Thus, each purchase has it's own per-share purchase price that has to be tracked for purposes of calculating capital gains on each individual purchase.At least that is the way I understand it. Those more Foolish than I might have other, more enlightening thoughts.Opv
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