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P
pcanizherndz
April 19, 2022
Question

I'm trying to enter a 1099-B Proceeds from a Broker and Barter Exchange transaction. I do not know what to put under "How did you receive this investment?

  • April 19, 2022
  • 1 reply
  • 0 views
What is DRIP shares?   The selection option does not have real information.

1 reply

E
ErnieS0
April 19, 2022

DRIP shares are stock purchases under a dividend reinvestment plan (DRIP). Instead of paying you a cash dividend, the company buys additional shares for you.

 

The dividend used to buy the new shares is taxable and reported every year on Form 1099-DIV.

 

Your cost basis is this taxable dividend amount used to buy the DRIP shares.

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