How are qualified dividends treated and what if some of the dividends are reinvesting into the stock? Does that impact my cost basis for capital gains tax?
The BIDaWIZ Team's Answer:
Qualified dividends are taxed at the maximum tax rate, of 15%; the same
as the current capital gains tax. The tax is incurred, regardless of whether the
dividends are received, or reinvested. If the dividends are reinvested, the stock
basis is increased by the amount of the tax paid, and by the dividend amount
that was reinvested.