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How are individual dividend reinvestment plans taxed and when are the taxes paid? |
I will be investing in a DRIP through the individual companies in which i purchase the shares or partial shares of stock.i understand that the dividends are taxable,but don't know how or when they will be taxed-rates/yearly/etc..will it be worth the investment or will the taxes eat up the gain? dividends are taxed in the year earned unless you are doing the drip in a tax deferred account. doing drips inside ira's can be done...but is generally either difficult or not worthwhile. Report It |
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