ESRX Purchase of MHS

iras1 on

Reorg fees should be entered as a negative return of capital, not an expense.

Ira Smilovitz

In a message dated 4/14/2012 3:33:04 P.M. Eastern Daylight Time, lscham8531@yahoo.com writes:

Hi Laurie, I checked acc't sync from TDA to Bivio

1.A return of Capital of $186.86

2.A long term capital gain of $1253.14

3 Expense TDA Service charges and fees $20

Laurie Frederiksen on

You might want to double check how your broker is treating the reorganization fee. There are two schools of thought about whether it is properly considered an investment expense or should be recorded as Ira has indicated as an increase in your basis in the investment.

Because your basis will need to match your brokers in the future, in this case it may be easiest to just go along with their interpretation.

When you receive the details of the sale of the fractional shares you received, just enter that as a sale using the "Sold" button on the Accounting>Investments page. The fractional share sales seem to be coming through later than the merger information is.

Laurie Frederiksen
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On Sat, Apr 14, 2012 at 4:45 PM, wrote:

Reorg fees should be entered as a negative return of capital, not an expense.

Ira Smilovitz

In a message dated 4/14/2012 3:33:04 P.M. Eastern Daylight Time, lscham8531@yahoo.com writes:

Hi Laurie, I checked acc't sync from TDA to Bivio

1.A return of Capital of $186.86

2.A long term capital gain of $1253.14

3 Expense TDA Service charges and fees $20

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