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Level 6

Solved

Stock Fee

Forum|Forum|3 years ago
February 25, 2023
2 replies
28 views

My broker charged me a fee for several of my stocks that had a reverse split. They call it a "Reorganization" fee. How do I report this on my tax return? Thank you.

Not A Product Question

Best answer by DMarkM1

You do not enter this fee in your tax return. The reorganization fee charged by your brokerage is an investment expense that prior to the Tax Cuts and Jobs Act was a miscellaneous itemized deduction subject to the 2% of AGI limit. This deduction was suspended through 2025.

Reorganization fees are the result of a company reorganization that in turn causes a brokerage house to reorganize the accounts of stockholders. Some brokerages charge a fee and some don't. Since the expense is charged by your brokerage for additional work they had to do in managing your account, then these are investment expenses.

Level 15

investment expenses are no longer deductible for federal;l purposes through 2025. some state's may allow the deduction

Mike9241

Level 15

You do not enter this fee in your tax return. The reorganization fee charged by your brokerage is an investment expense that prior to the Tax Cuts and Jobs Act was a miscellaneous itemized deduction subject to the 2% of AGI limit. This deduction was suspended through 2025.

Reorganization fees are the result of a company reorganization that in turn causes a brokerage house to reorganize the accounts of stockholders. Some brokerages charge a fee and some don't. Since the expense is charged by your brokerage for additional work they had to do in managing your account, then these are investment expenses.

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fasteddie577Author

Level 6

Thank you very much.