Capital Gains Taxes, before or after commissions?

Discussion in 'Taxes and Accounting' started by mab, Dec 3, 2007.

  1. 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.
  2. 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
  3. Most brokerages will add the commissions to your cost basis, so you shouldn't have to do anything in most cases
  4. 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?
  5. Surdo


  6. mab


    Thanks appreciate it.