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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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posted
June 6, 2019
10:37 AM
last updated
June 06, 2019
10:37 AM
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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?
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. .
June 6, 2019
10:37 AM
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