I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

posted

No, it doesn't. Dividends are taxed in the year you receive them, what you do with them is immaterial. However, when you reinvest them, this increases your cost basis of the stock when you sell it. .

Where in the 2024 TurboTax H&B version can I make the stock cost basis adjustments based on reinvested dividends (previous year software approach seems to be gone)?

in Investors & landlords

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I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

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I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

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I have dividend income but all of my dividends are reinvested. Doesn't that make them unrealized gains and not subject to tax until I withdraw them?

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