Wrong.<quoted text>Just to clear up something.
Yes the money that was invested was taxed and does NOT get taxed again, the div. that money brings in are taxed and it the stock goes up ONLY the amount the stock increased is income and gets taxed.
The Money he invested does NOT get taxed again.
I don't know if you have somebody do your taxes for you , IF you do then ask them.
Have a nice night
Earnings are taxed once at the corporate level, when the company is taxed on its earnings.
Then distributions of those earnings to shareholders are taxed A SECOND TIME as dividend income.
If the earnings are retained by the company and not distributed, increasing share value, the shareholder who sells shares is taxed A SECOND TIME on the resulting capital gain.
Either way, investment income IS TAXED TWICE, once at the corporate level and again at the individual shareholder level.