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Poodlebrain Tax Question

Posted on 2/7/14 at 11:30 am
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 2/7/14 at 11:30 am
If I own a muni bond fund that pays a non-taxable dividend, does that dividend still add to my basis? Thanks.
Posted by Jorts R Us
Member since Aug 2013
14786 posts
Posted on 2/7/14 at 11:32 am to
Can you have your cake and eat it too?
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 2/7/14 at 12:29 pm to
Are you using the non-taxable dividends to purchase additional units of the fund? If so, then you get basis in the new units equal to the purchase price.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 2/7/14 at 12:42 pm to
quote:

Are you using the non-taxable dividends to purchase additional units of the fund? If so, then you get basis in the new units equal to the purchase price.


Yes. Thank you.
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