Can I reinvest to avoid capital gains? A 1031 exchange refers to section 1031 of the Internal Revenue Code. It allows you to sell an investment property and put off paying taxes on the gain, as long as you reinvest the proceeds into another “like-kind” propertywithin 180 days. Reinve...
Income from capital gains, on the other hand, can only be offset by capital losses.2 Taxes on Dividend Reinvestment Some investors choose to reinvest their dividends. This is a process that takes cash dividends and automatically purchases additional shares in the same company rather than paying...
Tax implications:Reinvesting dividends can have tax implications, even if the dividends are not received in cash. The reinvested dividends may still be subject to taxes, potentially increasing your overall tax liability. Consult with a tax advisor to understand the tax implications specific to your ...