Reply To: Taxation of DRIP purchases

Home Fairmark Forum Taxation of Investments Taxation of DRIP purchases Reply To: Taxation of DRIP purchases

#6697
Lewis-H
Participant

Even though investors do not receive a cash dividend from DRIPs, they are nevertheless subject to taxes, due to the fact that there was an actual cash dividend–albeit one that was reinvested. Consequently, it’s considered to be income and is therefore taxable.