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<< 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.

Phil Marti
Tax Preparer
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