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mergers fees and tax basis of stock

 
 
David Zelinsky
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      05-03-2008, 10:25 PM
When a stock I own is subject to a merger or spinoff, the brokerage
which holds the securities charges a $20 "mandatory reorganization
fee". What is the tax treatment for this fee? Do I add this amount
to the tax basis of the stock, as with the commission on a purchase?

-David

========================================= MODERATOR'S COMMENT:
Yes, since it is a fee associated with that particular transaction

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Benjamin Yazersky CPA
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      05-04-2008, 11:29 AM
"David Zelinsky" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> When a stock I own is subject to a merger or spinoff, the brokerage
> which holds the securities charges a $20 "mandatory reorganization
> fee". What is the tax treatment for this fee? Do I add this amount
> to the tax basis of the stock, as with the commission on a purchase?
>
> -David
>
> ========================================= MODERATOR'S COMMENT:
> Yes, since it is a fee associated with that particular transaction
>





the $20 fee gets added to the basis of the stock



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