From: utzoo!decvax!harpo!floyd!cmcl2!tihor Newsgroups: net.taxes Title: Re: Reinvesting Dividends - (nf) Article-I.D.: cmcl2.26277 Posted: Sun Jan 2 00:12:13 1983 Received: Mon Jan 3 03:27:19 1983 #R:uw-beave:-26600:cmcl2:10600001:000:684 cmcl2!tihor Jan 1 23:11:00 1983 Also please keep in mind that some dividend reinvestment plans offer a discount on the market price when they are converting your money into stock, and current IRS interpretation is that this discount is ALSO taxable income (a form of dividend.) The IRS has been making some relatively unpleasant rulings in this area and I suggest you check with a real accountant if you do not plan on declaring all reinvested funds as dividend income. (My father, a stock broker, went around this may pole a few times with the family lawyer and accountant since he thought the IRS rulings were not reasonable but we decided that it would not be cost effective to argue the case in tax court.)