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We just transferred from one brokerage to another - there was a 75.00 charge to transfer.

They only transferred whole shares, selling off fractional ones for 2 stocks.

Can I adjust our cost basis of the fractional share gains to account for the 75.00 fee to change brokers?

It pretty much would wipe out the gains.

thanks in advance,
nag
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Can I adjust our cost basis of the fractional share gains to account for the 75.00 fee to change brokers?

The transfer fee would be allocated across the basis of all the shares that were transferred, not just the fractional shares. If there were commissions that were specific to selling the fractional shares, those would be applied to just the fractional shares.

AJ
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Can I adjust our cost basis of the fractional share gains to account for the 75.00 fee to change brokers?

The transfer fee would be allocated across the basis of all the shares that were transferred, not just the fractional shares. If there were commissions that were specific to selling the fractional shares, those would be applied to just the fractional shares.


No. The transfer fee does not affect cost basis. It is an investment expense which is deductible as a miscellaneous itemized deduction subject to 2% AGI haircut on Schedule A. Reorganization fees which accompany some mergers/spin-offs may adjust basis as they are related to corporate action, not fees which are incurred due to actions of the investor.

Otherwise, AJ is right. Any commissions apply to the (fractional) shares in that transaction.

Ira
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Thank you as always

You really give such help

nag
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