mstemper[at]siemens-emis.com (Michael Stemper) wrote:

- quote -

This seems like a legitimate expense tied to a specific
stock. I would add the cost to the basis of the stock when
reporting the transaction on Form 1040, Schedule D.

Lewis

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Michael Stemper wrote:

- quote -

I would think not. It sounds like an "expense for
the production of income" (rather than an
expense of sale), which would be a miscellaneous
itemized deduction (subject to the 2% floor).

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

mstemper[at]siemens-emis.com posted:

- quote -

I would just add it to the cost basis for the stock, when
you report its sale on your Schedule D with the 2004 return.

For the moment, simply file the cost receipt with your
purchase records for that security.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I held some preferred stock, which the issuer decided to
redeem. The redemption procedure required that I send the
certificate in via either registered or certified mail (I
don't recall which). This cost money.

Normally, I would expect that the cost of mailing in the
certificate would be deducted from the proceeds of the
redemption. However, there's a glitch: the redemption was on
Jan 2, 2004. This meant that I had to mail the certificate
in 2003, yet the income was in 2004.

Do I just hold onto the receipt until it's time to do 2004
taxes, and then reduce the proceeds accordingly? Do I deduct
them somewhere on 2003's Schedule A? If so, where? Something
else?

--
Michael F. Stemper
#include <Standard_DisclaimerBuild a man a fire, and you warm him for a day. Set him on fire,
and you warm him for a lifetime.
..

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->