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<< The gains and losses from your stock transactions will be reported to you by your broker. >>

Since the original poster is a real rookie, I'll offer an amplification. There is tax consequence only when you sell. IOW, paper gains and losses are not recognized, for tax purposes, until you dispose of the security.

Dividends are another matter. Dividends are taxable income to you in the year paid, even if you reinvest them.

IRS Publication 550 has a good discussion of the various tax issues on stocks, and Publication 564 discusses mutual funds. Both are available at

Phil Marti
Tax Preparer
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