No, a stock reorganization fee is not deductible. Investment fees, such as a stock reorganization fee, are no longer deductible. Prior to the Tax Cut and Jobs Act, such fees were deductible under schedule A as miscellaneous itemized deduction subject to 2% of AGI limit. Stock reorganization fees should not be confused with investment interest expenses which are sill deductible as an itemized expense.
Reorganization fees are either mandatory or voluntary. A mandatory reorganization fee can involve a cash merger by a company, or a reverse stock split. Sometimes when there is a reorganization mandated by the issuer of your stock, you will also be charged the fee as stockholders have no choice and this reorganization is required for all outstanding shares. Other corporate actions such as dividends declared, mergers, acquisitions of other companies, stock splits, spin-offs, and rights issues, may also involve fees. As with stock reorganization fees, the aforementioned fees are not deductible.
In contrast to a mandatory reorganization fee, a voluntary reorganization fee allows you an option. For example, with a voluntary tender offer, if you decline the tender offer, you will not be charged the fee; however, if you accept the tender offer you will likely be charged the reorganization fee.
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