I’m new to trading and I have a question regarding capital gains and commissions. Say I buy a stock at $1000 and sell it for $2000 and I pay $1.00 in brokerage commissions to buy and to sell. Does the IRS, or in my case the CRA (Canada Revenue Agency) calculate the profit based on the buy and sell price? Or do they deduct the commissions ($1000 gain - $2 in commissions = $998 net profit)?
Commissions and Capital Gains
- Thread starter ross1985
- Start date
Robert Morse
Sponsor
For the IRS, you would report the net purchase price and the net proceeds including commissions and regulatory fees.