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Recording Taxible Company-paid Stock Purchase Fees

My GM dividends are automatically reinvested. Each statement bears a notation that GM paid the commission for the transaction, gives the amount, and states on the back that the commission amount is taxable. I don't know how to record it.

One thought is to pull up the "ReinvDiv" wizard, enter the full dividend and number of shares, enter the commission, then go back up and enter the same amount of that commission in the "Interest" line. That line does have a "Shares" window associated with it so I really don't know what it might ask for. If it insists on being plugged with a number before accepting the complete transition, then this wouldn't be the answer; my total shares would be off.

How should this entry be made please?

Reply to
John Gregory
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Here is one approach - look at it as an income event followed by a buy event.

I am assuming the taxable commissions will be included in the total dividend income reported to you at year-end on GM's Form 1099.

Record an Income Transaction with the entry in the 'Dividend:' the amount being reinvested plus the commission, i.e., total dividend paid including commission.

Record a Buy Transaction for the amount being reinvested and enter the amount of the commission in the appropriate field.

Your cash position will balance and your taxable income tracking should be accurate.

Reply to
JM

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