taxes on reinvested dividends for mutual funds
hypothetical question - I purchased a mutual fund for $10,000, and over time received $1000 in dividends which I've reinvested back into the mutual fund. Over time, the value of the mutual fund is now at $15,000 (NAV increases the value by $4,000, and my reinvested dividends add $1,000 to the value). I now sell the entire thing. Since i already paid taxes on my reinvested dividends, is my tax responsibility only on the $4,000 gain?
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