If you reinvest dividends on a stock and the broker charges a fee for reinvestment, is the fee part of the cost basis for the stock? For example, if the dividend is $100 and the fee is $1, $99 is used to buy shares in the reinvestment plan. Would $100 be added to the cost basis for the stock or would it be $99?
Thanks for any help!
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commissions and fees are part of your cost basis.
Your basis is $100 even though you got $99 worth of stock, as of that moment.
However, it being a covered transaction, the broker is going to calculate and record your basis of reinvested dividends.
You have to ask them for the answer to your question.
Thanks for the response. It's a non-covered stock so the broker isn't tracking the basis.
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