TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 1

Question

When computing a cost basis on a dividend reinvestment plan, can I add in the amount of taxes I pay yearly on the dividends?

Forum|Forum|7 years ago
June 6, 2019
1 reply
6 views

Trying to compute the cost basis on DRIP account in a taxable account. I understand that the dividends are the cost basis but can I also add in the amount of taxes that I pay each year? This would make my cost basis higher and thus less of a gain when I sell.

Level 15

No. And how would you calculate the tax just on the dividend amount? The tax didn’t buy more shares. You are adding the drip back in because it was a purchase of more shares.

Level 15

You paid tax on the dividends you reinvested. So, you get to count that dividend amount as your tax paid basis in the purchased shares. So, you have already received the tax benefit.