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Cost basis for reinvested dividends

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?  

 

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3 Replies

Cost basis for reinvested dividends

@fanfare  is correct. (As usual)!

Cost basis for reinvested dividends

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.

@WinstonS 

Cost basis for reinvested dividends

Thanks for the response.  It's a non-covered stock so the broker isn't tracking the basis.  

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