I was charged a $38 "Mandatory Reorganization Fee" by ETrade when a stock had a reverse split. Is this tax deductible? If not, do I add it to my tax basis?

  • 1
    Can we assume the United States? If not, please specify the country. – mhoran_psprep Nov 13 '19 at 10:48

It used to be tax deductible if your investment expenses exceeded 2% of your AGI, but it's no longer deductible. I'd consider looking at alternative brokerage firms as that seems very high. In my opinion, these types of fees are likely to increase across the board to offset the zero trading commission marketing efforts.

Schwab article on deductible investment expenses

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.