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Treatment of investment transaction fee

My brokerage charges a fixed $6 fee (in addition to variable commissions) for each buy/sell. Should this fee be treated as part of the cost of the security or as an investment expense? Quicken has a preference where you can enter the fee but no explanation on how it should be treated (not that I'm surprised, really). It also doesn't seem to work (is not carried over to the transaction screen) even after setting the $ amount.

jo

========================================= MODERATOR'S COMMENT: Since it is a fee associated with that particular trade, include it as part of the cost basis or cost of sale.

Reply to
jo
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how do you treat a broker charge associated with dividends or mergers? I've seen some charges for foreign dividends (not the foreign tax, but a broker charge) and I've seen charges when a company merges (not a "trade" for the owner).

Reply to
Wallace

I would consider the charges when a company merges to add to the basis.

On the dividends, the amount the broker kept I wouldn't consider income in the first place; it was never actually available to me.

Seth

Reply to
Seth

Good. That's what I've been doing. Just wanted confirmation.

jo

Reply to
jo

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