I work for a company headquartered in Britain, and they provide an ESPP. The ESPP is managed by a third party, who also provides access to the stock exchange, manages all the paper work etc. The shares are bought and sold on the London stock exchange in GBP.
At the time of the sale, the proceeds are immediately converted to USD and wired to my U.S. bank account; there is no option to leave them at the broker service that manages the ESPP. The broker service adds a 4% or so markup to the FX rate when they do the currency conversion. There is also a 25GBP wire transfer fee.
Question: Can I treat the currency conversion markup as part of the selling cost, and deduct it from the proceeds? Can I treat the wire transfer fee as part of the selling cost and deduct it from the proceeds?
You'll need to sign in or create an account to connect with an expert.
Yes on both accounts. These mandatory charges reduced your net gain on the sale, so they should be deducted from the gross proceeds.
Yes on both accounts. These mandatory charges reduced your net gain on the sale, so they should be deducted from the gross proceeds.
Do you have any citation for this? I cannot find any reference at all in any tax code.
Thanks.
Do you have any citation for this? I cannot find any reference at all in any tax code.
Thanks
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
topazinferno
New Member
kaitlynguterl479
New Member
arhaak
New Member
thecoraks215
New Member
kmwolfrum
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.