The dividends are taxed as regular income, which is 28% (or whatever your marginal rate is). The captial gain (the increase in price) is taxed at 20% (10% if you're in the 15% tax bracket). That assumes that you hold it for at least a year-plus-one-day (to make it a long-term capital gain). So, if you are in the 28% bracket, you would want to subtract 28% of dividends plus 20% of the difference in stock prices to cover your taxes. There is no guarantee that this would work perfectly, since a good year might slip you into a higher bracket.Keeping in mind , since the FF is a Long Term strategy,that these numbers are correct today. May be differenttomorrow. And will almost certainly be different 5yrsfrom now . Which is just to say that tax-planning cannever be Precise.FWIW --mine's in a taxable acct and i plan to pay the taxes from outside the F4 bucket.jp
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