Commissions not deductible?

Discussion in 'Professional Trading' started by corvus, Jan 20, 2003.

  1. corvus

    corvus

    I took a look at page 67 of the IRS Pub 550 (http://www.irs.gov/pub/irs-pdf/p550.pdf) which explains the specifics of trader status. Under expenses, it says that commissions are not a deductible expense. Is this is true? It seems like such a huge cost of doing business to a trader to not be deductible.
     
  2. i believe u add that on to cost basis of the stock when u buy/sell
     
  3. Commissions are included in your cost basis as a calculation of profit and loss. :D
     
  4. corvus

    corvus

    thanks!