Deduction of "mandatory reorganization" fee?


M

Michael

Twice in 2005, companies in which I owned stock underwent a
corporate restructuring which led to my being charged a
"mandatory reorganization" fee by my brokerage. Is there
some particular place on a 1040 where this fee is supposed
to be deducted? Or is it supposed to just be added to the
stocks' respective cost bases?

- Michael
 
Last edited by a moderator:
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M

Mark A. Hvasta, CPA

Twice in 2005, companies in which I owned stock underwent a
corporate restructuring which led to my being charged a
"mandatory reorganization" fee by my brokerage. Is there
some particular place on a 1040 where this fee is supposed
to be deducted? Or is it supposed to just be added to the
stocks' respective cost bases?
If the expense is charged by your brokerage for additional
work they had to do in managing your account, then these are
investment expenses which are deductible on Sch A subject to
2% of AGI, if these are fees charged by the corporations to
shareholders (which doesn't seem likely), then I would add
to the basis of the shares owned.
 
Last edited by a moderator:

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