A Question? If you purchase some stock years ago and elect to have dividends reinvested in the stock and then later sale the stock - on the Tax Form, what do you use as the purchased date? The original date? Or what happens to the dividend dates and reinvestment on those dates?
Thanks for any insights! charliec
Fr purposes of tax reporting, reinvested dividends are treated as if you'd received the dividend in cash and then made an immediate purchase. When you sell the shares purchased with those dividends, the dividend date is used as the purchase date.
If you sell the entire holding, you can simply use "Various" as the purchase date. You just need to separate out any shares you received in the past year, since they'll be short-term gains/losses rather than long-term.
Thanks - got it! charliec
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