Options accounts & routing
What is an options assignment fee and how does it impact the cost basis of equity acquisition via short puts?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
An options assignment fee is a flat per-event charge some brokers apply when a short option is assigned, which adds to the effective cost basis calculation of shares acquired via a short put assignment under IRS basis rules.
How it works
For tax purposes under IRS guidance, the put premium received reduces the cost basis of stock acquired via assignment, while any broker-charged assignment fee is a separate transaction cost not addressed by the IRS directly.
An example
Selling a put for $2 premium that gets assigned at a $50 strike results in an effective cost basis of $48 per share for tax purposes, before considering any broker assignment fee.
Risk & limitations
Assignment fees and their amounts vary by brokerage and are not standardized or regulated at the federal level, so check your specific broker's fee schedule directly.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.