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StockCentral :: Community
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Join in on the discussion with other like-minded investors in our community forums. Learn about the fundamental investing methodology and participate in educational workshops in the Investing forums, stay up-to-date on StockCentral news and make suggestions to the StockCentral team in Central Square, and discuss your favorite stock or recent market news in our A-Z ticker-based forums.
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Margaret Wentworth
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| 01/03/2007 7:48 PM |
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Our club owned JLG, which was bought by Oshkosh trucks for cash. We got 28.00 per share and the transaction had no fees or commissions, for a net of 2800.00. But in a separate transaction, we were charged a "reorganization fee" of $20.00 by TD Ameritrade, which said they had to change the stock symbol.
My question is, how do we record this $20.00 fee? Should it be assigned to JLG's cost basis somehow? Or should we just post it as a deductible expense and not qualify it in any special way?
Thanks, Peg Wentworth, Treasurer, Women's Investment Network, Lancaster, PA
PS Seems I get one of these oddities every year! |
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rip west
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| 01/12/2007 11:35 PM |
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Peg,
Only one a year? You're lucky. Yes, this should be added to JLG's cost basis before the sale, or considered as a commission on the sale. You can't take it as a deduction, but if you could, you should classify it a 'rip off from the brokers'. They seemed to have just found out about this in the last few years, and are making the most of it with every unusual transaction.
If you are using a club accounting program, the only way that you can add this to basis is to enter a negative return of capital.
Rip West |
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