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This is the first year I've purchased stocks, and already anticipating next year's return. Question: if I so not sell any stock and keep reinvesting the dividends, do I pay taxes on the amount that is reinvested? (Everything is long term hold.)
I feel quite the newbie even having to ask this question,but what better place?

Thanks.

Glory
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If it is truly a dividend and not a paper capital gain, then yes you do. Think of it this way: you could take the dividend in cash and invest it in something else. It's pretty clear the dividend would be taxable in that case, and it still is with dividends that are reinvested.

By the way, you'll want to take special care about the records you keep, in order to figure out your cost basis when you sell eventually. The pain of having to do this is something the people who advocate DRIPs seldom mention.
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This is the first year I've purchased stocks, and already anticipating next year's return. Question: if I
so not sell any stock and keep reinvesting the dividends, do I pay taxes on the amount that is
reinvested? (Everything is long term hold.)


You have to pay income taxes on the dividends (and capital gains distributions if dealing with any mutual funds) whether or not you reinvest them. You might want to read about various tax issues under the FAQ just to educate yourself.
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