Capital Gains Taxes, before or after commissions?

[mab]

Simple Questions for somebody knowledgeable:

Let say at the end of the year I showed a profit $1,000 with commissions at $250. Do I pay capital gains tax on $1,000 or $750?


Or let's say at the end of the year I showed a loss of $1000 plus commissions of $250. Is my total loss for tax purposes $1,000 or $1,250?

I would be filing simply with a 1040, no special status.

 

[Surdo]

When you fill out the Schedule D use the NET purchase/sale price to calculate your gain/loss and tax liability. (Cost after commissions & SEC fees)

el surdo

 

[trader_arb]

Most brokerages will add the commissions to your cost basis, so you shouldn't have to do anything in most cases

 

[mab]

Thanks. That was what I thought, but wanted to make sure on the profit side.

On the Loss side, would the commissions be added to the loss?

 

[Surdo]

Quote from mab:

On the Loss side, would the commissions be added to the loss?

Simply report the COST and PROCEEDS and NET result including the Fees/commissions, on any trade.

Google a SCHEDULE D and instructions, it's really not that complicated.

Here it is!

http://www.irs.gov/pub/irs-pdf/f1040sd.pdf

http://www.irs.gov/pub/irs-pdf/i1040sd.pdf

 

[mab]

Thanks appreciate it.