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.)