Automatic investment service and dividend reinvestment plans. A bank may offer its checking account customers an
automatic investment service so that, for a charge, each customer can choose to invest a part of the checking account
each month in common stock. Or, a bank that is a dividend disbursing agent for a number of publicly-owned
corporations may set up an automatic dividend reinvestment service. Through that service, cash dividends are
reinvested in more shares of stock, after the bank deducts a service charge.

A corporation in which you own stock also may have a dividend reinvestment plan. This plan lets you choose to use
your dividends to buy more shares of stock in the corporation instead of receiving the dividends in cash.

You can deduct the monthly service charge you pay to a bank to participate in an automatic investment service. If you
participate in a dividend reinvestment plan, you can deduct any service charge subtracted from your cash dividends
before the dividends are used to buy more shares of stock. Deduct the charges in the year you pay them.