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Hi all. Can you delay paying income taxes on dividends with DRIPs? Obviously if you take a dividend payout in cash you have to pay taxes on it (except with a Roth IRA). I'm asking because I have some dividend stocks in my personal account.

Thanks!
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Can you delay paying income taxes on dividends with DRIPs?

No.

--Peter
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In a non-taxed deffered account, it is all treated as income. One caveat, if you have held the dividend generating stock for longer than a year, IIRC, the dividends might be "qualified" and taxed at a lower rate.

Not sure if recent tax code changes have changed that or not.

JLC
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Remember to track the cost basis for the shares purchased with dividends.
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... if you have held the dividend generating stock for longer than a year, IIRC, the dividends might be "qualified" and taxed at a lower rate.

Actually, the holding period for qualified dividends is 60 days.

http://en.wikipedia.org/wiki/Qualified_dividend

meet holding period requirements: You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date.
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Thanks for the replies. I can see why it would be a good idea to keep track of the cost basis of the shares purchased with dividends. Good suggestion.
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Also good info about qualifying dividends.
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