Question
Delores received Form 1099-DIV, reporting $50 in dividends for 2018. She had previously elected to have these dividends reinvested. Which of the following statements regarding
Delores received Form 1099-DIV, reporting $50 in dividends for 2018. She had previously elected to have these dividends reinvested. Which of the following statements regarding the reinvested dividends is TRUE? The dividends are __________. Not taxable until the stock is sold. Not taxable on her 2018 return, but the new shares purchased increase her basis in the stock. Taxable on her 2018 return, and her basis in the new shares purchased is the cash value of the dividends. Taxable on her 2018 return and increase her basis in the original shares.
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