Are we required to pay taxes on reinvested dividends in the year 2012? Are there any changes we should be aware of in 2013?
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Tax Professional Answers
William Keats
You are required to report the reinvested dividends as income in 2012. However, they may be part or all of the qualifying dividends, qualifying for exemption from tax. but they are reportable and are included in your cost basis when you sell. Long-term capital gains may be exempt as well, depending on your tax bracket..
In 2013, the exemption will be gone, and the tax rate on dividends and capital gains increases.
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568 weeks ago
In 2013, the exemption will be gone, and the tax rate on dividends and capital gains increases.