Let’s break it down clearly:

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### 1. **QQQI and QDVO — Tax Structure**

Both **QQQI (Invesco QQQ Innovation ETF)** and **QDVO (Invesco Dividend Opportunities ETF)** are **U.S.-listed ETFs**.

In the U.S.:

* **Capital Gains Taxes** apply **only when you sell** the ETF for a profit.

* **If held for over 1 year → Long-Term Capital Gains (usually 15–20%)**.

* **If sold before 1 year → Short-Term Capital Gains (taxed as ordinary income)**.

* **Dividends** are taxed in the year they're paid:

* **Qualified dividends → taxed at long-term capital gains rate**.

* **Non-qualified dividends → taxed at ordinary income rate**.

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### 2. **"Not Taxed Until Cost Basis Goes to Zero" — Is This True?**

No, **that's incorrect for dividends**. Here's why:

* **Dividends are taxed when paid**, regardless of whether they exceed your cost basis.

* The **cost basis is reduced when dividends are "return of capital" (ROC)**, but **most ETFs like QQQI and QDVO distribute ordinary or qualified dividends, not ROC**.

* For **capital gains**, taxes are indeed **deferred until you sell**.

* Only **return of capital (ROC) distributions** delay taxes until you sell or your cost basis is adjusted to \$0 (which is rare for QQQI/QDVO).

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### 3. **Summary of Tax Treatment:**

| **Event** | **When Taxed?** | **Tax Type** |

| ---------------------------------- | ------------------------------- | --------------------------------------- |

| **Dividends Paid (Qualified)** | Taxed in year received | Long-Term Capital Gains Rate |

| **Dividends Paid (Non-Qualified)** | Taxed in year received | Ordinary Income Rate |

| **Capital Gains from Selling ETF** | Taxed upon sale | Long-Term or Short-Term Capital Gains |

| **Return of Capital (if any)** | Lowers cost basis, tax deferred | Taxed when ETF is sold if basis reduced |

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### TL;DR:

* **QQQI and QDVO dividends are taxed when paid**.

* **Capital gains are taxed when you sell**.

* **Cost basis only comes into play when determining capital gain on sale or with ROC adjustments**, but regular dividends are taxed right away.

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Do you want me to estimate **how much tax you'd owe on a \$10,000 position in QQQI or QDVO after a year assuming typical dividend yields?**

(http://www.autoadmit.com/thread.php?thread_id=5755790&forum_id=2...id#49139069)

https://www.nasdaq.com/market-activity/etf/qqqi/dividend-history

(http://www.autoadmit.com/thread.php?thread_id=5755790&forum_id=2...id#49139073)