The other post doesn't mention anything specifically about stock reorganization fees. Is there any reputable guidance (e.g. from IRS) that stock reorganization fees can be treated like a stock trading fee (i.e. sales expense) and added to the cost basis? The "best answer" in this thread from @VictorW9 is saying that it's considered an investment expense (that used to be conditionally deductible in Schedule A, but no longer is starting in tax year 2019). It cannot be considered both an investment expense and a sales expense.
I have the Turbotax Deluxe CD version, and when I try going thru the "uncommon situations" flow for the merger related stock sale, there is an option for the stock transaction that says "I paid sales expenses not reported by my broker. (This is not common.)". There is a link for "sales expenses" that opens a popup that states:
This includes any expenses you paid on the sale that are not already subtracted from your net proceeds (Box 1d) or added to your basis (Box 1e) and listed on Form 1099-B or substitute broker's statement. (This is not common.)
Examples of items to include here:
- Wire transfer fees
- Phone or Fax fees
- Express delivery fees
So it doesn't list stock reorganization fees in the examples (I realize this doesn't necessarily mean that it's not a valid example, but if it was listed as one, it would definitely provide clarity). Checking this option shows a new field labeled "Sales Expenses Not Reported By Broker" to enter an amount.
The main question is whether stock reorganization fees should be considered a sales expense or an investment expense, and I'm looking for guidance on this.
