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?

ANSWER

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.