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Are reinvested dividends taxed twice, once when received and once when sold?

Forum|Forum|7 years ago
June 6, 2019
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Best answer by Irene2805

Because there was an actual cash dividend, although reinvested, it is considered to be income and thus taxable. And, as with any stock, capital gains from shares held in a dividend reinvestment plan (DRIP) are not calculated and taxed until the stock is finally sold, usually several years down the road.

[Edited | 3/31/2020 | 9:50am PDT]

I

Irene2805Answer

Because there was an actual cash dividend, although reinvested, it is considered to be income and thus taxable. And, as with any stock, capital gains from shares held in a dividend reinvestment plan (DRIP) are not calculated and taxed until the stock is finally sold, usually several years down the road.

[Edited | 3/31/2020 | 9:50am PDT]