mergers fees and tax basis of stock

Discussion in 'Tax' started by David Zelinsky, May 3, 2008.

  1. 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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    David Zelinsky, May 3, 2008
    #1
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  2. "David Zelinsky" <> wrote in message
    news:...
    > 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



    --


    ___________________________________
    <<< Benjamin Yazersky, CPA [NJ & NY] >>>
    -----> real address on hobokeni or hobokenx <-----

    "This written advice was not intended or written to be used, and it cannot
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    The information transmitted is intended only for the person or entity to
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    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Benjamin Yazersky CPA, May 4, 2008
    #2
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