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The ADR fees should be added to the basis of your stock.

If the ADR was in your IRA, there is no specific tax treatment in the current year as everything is tax-deferred.

No. The ADR fees are a miscellaneous itemized deduction subject to a 2% AGI haircut. They do not affect the basis of the stock. If the ADR is held in a tax-deferred account, it's just an additional fee with no tax consequences.

The ADR fees have always been there, but until a year (or two) ago, brokers were not allowed to pass them through separately to the shareholders. They were included in the foreign taxes withheld. As a result, taxpayers got a larger credit for foreign taxes than they were entitled to.

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