Stocks

How Do I Calculate Cost Basis For Reinvested Dividends?

Using a dividend-reinvestment plan, you get the stock at its original price when you buy new shares. The basis in each share would be $16.67 ($500 divided by 30) if you invested $500 in dividends and bought 30 additional shares. Do you include reinvested dividends in cost basis? Non-dividend-paying stocks’ equity cost basis is computed […]

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How Dividends Taxed?

Income from ordinary dividends is taxed in the same manner as other income sources. Dividends that are eligible for tax deductions are taxed as capital gains if they qualify as dividends. Qualified dividends are currently taxed at a 20%, 15%, or 0% rate, depending on your tax bracket, under current legislation. Are dividends taxed at

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