03-29-2014, 06:36 PM
(03-29-2014, 03:29 PM)DRILLINDK Wrote: Are there tax implications if you automatically reinvest the dividend income in the company or DRIP? I'm aware you would pay taxes on any dividend you draw on from your account, however if you elect to receive the cash dividend and reallocate to another stock do you pay taxes on the dividend income?
The tax status of your dividend is not affected by what you do with it.
(03-29-2014, 03:29 PM)DRILLINDK Wrote: I've read that a big negative to DGI is cost basis tracking for tax purposes. Is this really a big deal anymore since online brokers have become so popular. Don't they automatically keep track and record this for you?
My broker tracks cost basis.