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Fees and taxes
- Thread starter John9999
- Start date
Yes your right...also taxation is immoral and theft.. as a percentage how much of your taxes do you agree with and do you know who audits and oversees the IRS? What entity do you have on your side of the IRS decides to seize your assets? And if you get the back do you think they would pay you interest for the time they stole your money
Can someone please explain to me how commissions and fees play Into income tax or not? I would think that is a direct deduction against annual profit? I’m am in USA
It's actually a complicated topic that requires some research. Edit, and I don't mean that as some kind of snide comment .. I mean I've been trying for years to understand it all and still don't understand all the ins-and-outs.
Answer. It’s a reduction to cost basis
https://finance.zacks.com/stock-commissions-paid-tax-deductible-irs-filing-8230.html
https://finance.zacks.com/stock-commissions-paid-tax-deductible-irs-filing-8230.html
Can someone please explain to me how commissions and fees play Into income tax or not? I would think that is a direct deduction against annual profit? I’m am in USA
Commissions affect cost basis. As for other types of fees, it depends on various things. You'll have to be more specific.
Specifically I’m talking about the broker commissions and the exchange fees trading index futures
Commissions affect cost basis. If you are saying an exchange fee that you have to pay per transaction, that would affect the cost basis. If you are saying an exchange fee to see market data (a monthly fee), then that does not affect cost basis (but you can write it off as a business expense if you qualify as a "trader" in the eyes of the IRS).
here's what wilt wrote me, in a very simple and easy to understand way:
"Commissions are not a separate charge. They are factored into your P&L. You don't pay tax on commission separately, just your net P&L.
Wilt"
"Commissions are not a separate charge. They are factored into your P&L. You don't pay tax on commission separately, just your net P&L.
Wilt"