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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121096  
Subject: Re: HELP! ADR(VALE) + Reorg. Fees(DBTK),Cash in Date: 3/7/2011 10:13 PM
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I would appreciate any help on the following questions:

1. I have two "ADR Processing Fees" associated with Dividends from VALE (and RANDGOLD). Do I just subtract these fees from the Dividends and then report that net dividend, or is there some other way I should report this.


ADR Processing Fees are investment expenses. They are reported on Schedule A as miscellaneous itemized expenses subject to 2% AGI.

2. When SA Recommendation Doubletake (DBTK) was acquired, I cashed out. I understand this is a sale that should be reported on Schedule D. However, there is also an associated entry on my brokerage form for a "$20 Mandatory Reorganization Fee." Do I add this to the basis, or is there a better way to report this?

You add this to the cost basis. It reduces your gain or increases your loss upon the sale of DBTK.

3. Bonus Question. This is not related to an SA stock, but perhaps someone can help! A company reorganized, leaving me with a fractional share. This fractional share was liquidated; that is, the company paid me the cash equivalent of the fractional share. This transaction is titled, "Cash in Lieu." Again, I'm not sure where/how to report this income.

It's a sale of the fractional share for the cash in lieu amount. You allocate your original cost basis to all of the shares in the reorganization (including the fractional share).

Ira
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