Stocks sometimes do splits and reverse splits; and brokerage firms charge a reorganization fee. Is that fee added to the cost basis? Or is that just an investment expense?
TIA
Cost basis
Feb 01, 2020
Last reply: 6 years ago
2 Replies
I treat it as being no different than a transaction fee and add the amount to the cost basis of the securities.
Seems to me that since you end up with the same asset before and after the reorganization, it's not much of a transaction. I'd call it an expense.
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