If I pay taxes on rein invested dividends each year, how do I decrease cost basis of current dividend?

trimbolijt — Sat, 01 Jun 2019 04:27:49 GMT

I'm not selling my mutual, just let dividends rein invest.

Actually, if you pay taxes on the dividends you receive e...

ToddL — Sat, 01 Jun 2019 04:27:50 GMT

Actually, if you pay taxes on the dividends you receive each year, your cost basis in the mutual fund goes up each year by the amount of the annual dividend.

When you reinvest dividends in a non-retirement mutual fund, you are buying additional shares of that fund. The "cost basis" of the additional shares is the taxable dividend you reinvested.

topic If I pay taxes on rein invested dividends each year, how do I decrease cost basis of current dividend? in Investors & landlords

If I pay taxes on rein invested dividends each year, how do I decrease cost basis of current dividend?

Actually, if you pay taxes on the dividends you receive e...