When you open a mutual-fund account, you can receive dividends as cash or have them reinvested. You can also do this with stocks in either of these:
- Dividend-reinvestment program
- Employee stock-purchase plan
Most people reinvest their dividends, which buys more shares. However, when you buy shares through reinvestment, it’s like you received the cash and immediately bought more shares. You must keep track of the basis of each share when you buy them — whether directly or through reinvestment.
Learn more about rolling your 401K into an IRA with help from the tax experts at H&R Block.
When you come into surprise money, you have to pay taxes on prize money. Learn more with the tax experts at H&R Block.
What is Cryptocurrency? Bitcoin, Litecoin, and the like leave many wondering how to classify this new form of investment. Find the answer at H&R Block.
If you are lucky enough to have your student loans paid off by someone else, you may have to think about the tax implications. Learn more at H&R Block.