From: utzoo!decvax!harpo!npoiv!npois!houxm!ihnp4!ixn5c!inuxc!pur-ee!uiucdcs!gear
Newsgroups: net.taxes
Title: Re: Reinvesting Dividends - (nf)
Article-I.D.: uiucdcs.1285
Posted: Fri Dec 31 12:27:17 1982
Received: Sun Jan  2 01:27:01 1983

#R:uw-beave:-26600:uiucdcs:13200001:000:346
uiucdcs!gear    Dec 31 09:42:00 1982

They have to be reinvested via a dividend reinvestment plan as I understand it.
They are then deferred until you sell the stock at which time the basis of
the stock so purchased is zero--that is, you will pay taxes on the total
proceeds from the sale of the stock you so obtained, but at capital gain rates
which are 40% of regular income rates!