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I have a 1099 DIV form for a stock reinvestment plan. Is the amount considered a dividend or a stock not sold?

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I have a 1099 DIV form for a stock reinvestment plan. Is the amount considered a dividend or a stock not sold?

A reinvested dividend is taxable. It is really 2 transactions, you got a Dividend then you bought more shares. Just like if they sent you a check and then you bought more shares. So be sure to add it to your cost basis when you sell the shares.

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Intuit Approved!

I have a 1099 DIV form for a stock reinvestment plan. Is the amount considered a dividend or a stock not sold?

A reinvested dividend is taxable. It is really 2 transactions, you got a Dividend then you bought more shares. Just like if they sent you a check and then you bought more shares. So be sure to add it to your cost basis when you sell the shares.

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