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It is also wise to look at your accounts at least once a year because some of your investments might pay dividends that you have to report on your tax returns.
by lisper 5y ago
It is also wise to look at your accounts at least once a year because some of your investments might pay dividends that you have to report on your tax returns.
- cehrlich 5y agoFor most major ETFs there are accumulating versions that automatically re-invest any dividends into the ETF. A good choice for the lazy investor IMO.
- lisper 5y agoYou still have to pay taxes on those dividends in the year they are paid.
- klipt 5y agoIn America, yes. The person you're replying to seems to live in Europe. I believe in many European countries there's no tax on accumulating ETFs that reinvest dividends, until you sell them and realize the capital gain. In a way this erases the tax efficiency difference between dividends and buybacks.