Are dividends taxed only if stock is rising?
What if your Apple stock falls this year by 30% and the dividend rises by 1%. Given you lost a TON more in stock value, do you still get taxed on the dividend?
- StephenWeinsteinLv 71 month ago
You are still taxed on the dividend.
The stock falling doesn't affect your taxes while you still own it. However, when you sell the stock, you can use up to $3000 per year of loss in value to offset other income so that you don't pay as much tax.
- JudyLv 71 month ago
yes you're still taxed on dividends
- tiescoreLv 61 month ago
The price is meaningless until you sell. If you buy 100 shs of Apple at $300 and it drops to $250 you have 100 shs of Apple. You don't realize a loss unless you sell.
- regeruggedLv 71 month ago
You pay tax on the dividends. If you sell the stock at a loss, you deduct a capital loss.
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- Anonymous1 month ago
Stock prices are unrelated to dividends. Dividends are always taxable.
- RobertLv 61 month ago
You have not lost or gained until you cash in the stock. Therefore you are taxed on the dividend and will be taxed on the gain or credited with the loss when you sell the stock. You are taxed on the income you receive and not the holdings you have.