Capital Gains Taxes, before or after commissions?

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.

 

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

 

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

 

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?

 

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

 

Thanks appreciate it.