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Dividend reinvestment tax free

Updated: 9/14/2023
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15y ago

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no, they are not tax free.

The dividends are taxed in the year paid.

The dividend reinvestment is a purchase of stock just as if you used cash. You have to track every single purchase transaction of stock from every reinvestment to keep track of the cost basis of each stock, so as to cost it out when you sell.

Motley fool has some nice info on this

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Q: Dividend reinvestment tax free
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