in [Event] Ask the Experts: Investments: Stocks, Crypto, & More
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VolvoGirl is exactly correct. Your need to pay tax is based on a principle called Constructive Receipt. You are considered to have received the capital gains distribution, which was yours to use in any way you chose. Since you chose to reinvest it, it becomes your cost basis for the shares you purchased with the reinvested money.
VolvoGirl is exactly correct. Your need to pay tax is based on a principle called Constructive Receipt. You are considered to have received the capital gains distribution, which was yours to use in any way you chose. Since you chose to reinvest it, it becomes your cost basis for the shares you purchased with the reinvested money.
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