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I just sold my first stock in 2003. A big chunck from my companies employee stock purchase plan. About 4 years worth of monthly purchases.

I see that some of the shares are from dividends that were re-invested. Since I already paid taxes on those dividends, is there anything special I do so I don't pay too much or more tax than I need to?

I also see that Turbo Tax is asking for the grant date in addition to the purchase date. Is this grant date necessary? The person who handles this at my company doesn't even know what that is?

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see that some of the shares are from dividends that were re-invested. Since I already paid taxes on those dividends, is there anything special I do so I don't pay too much or more tax than I need to?


You don't need to do anything more special than the way you would normally deal with selling shares from reinvested dividends - you will still have to come up with a basis (cost) of those shares and then deal with the gain or loss from the date you received them until the date of the sale.
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You seem to have posted this message twice. Was it because you didn't get a complete answer in a hour?

Relax and take a deep breath. People on this board are helpful, but do not actually have super-speed :)

I see that some of the shares are from dividends that were re-invested. Since I already paid taxes on those dividends, is there anything special I do so I don't pay too much or more tax than I need to?

For each stock purchase you have a cost basis.
The reinvested dividends are another stock purchase. You'll need to note the price paid for those shares, and that will be your cost basis for them. Does this make sense or should I explain further?

I also see that Turbo Tax is asking for the grant date in addition to the purchase date.
Sorry, can't help with this.

- Megan
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Something happened to my post, because I can't find it. I apologize if this appears twice. However, I may have accidentally posted the original message instead of mine, if that is possible. I am computer illiterate.
If dividends were reinvested, then they become part of the basis for shares of stock. You will not be double taxed, because when you sell those shares, the basis includes the dividend, which will affect the gain or loss.
Information about stock is best summarized in Publication 550, Investment Income and Expenses. Publication 544 talks about Sales and Other Disposition of Assets, and Publication 551 talks about Basis of Assets.
Hope this helps, if you have any more questions, drop a line here, and I will try to help.
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