So how does reinvestment of dividends and/or having dividends go into a cash account then manually reinvesting work when tax time comes around? Do you pay for the "profit" made from the dividends in the current tax year? And would this count as regular interest income?
I'm also wondering if your online broker will "remember" any cost basis calculations when you actually sell off a stock and/or if it applies to automatic reinvestments. I've read a few places where people kept large spreadsheets detailing all of their buying/selling and that seems like a hassle when the broker probably has all of that data... Don't know what really goes on though but would like to before getting into the game.
Please put tax questions in the tax thread here.
admin allisolm
I'm also wondering if your online broker will "remember" any cost basis calculations when you actually sell off a stock and/or if it applies to automatic reinvestments. I've read a few places where people kept large spreadsheets detailing all of their buying/selling and that seems like a hassle when the broker probably has all of that data... Don't know what really goes on though but would like to before getting into the game.
Please put tax questions in the tax thread here.
admin allisolm
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