Computing Schedule D "Cost basis"?

Discussion in 'Professional Trading' started by jonasAnoj, Dec 16, 2006.

  1. jonasAnoj


    I'm a new trader getting ready for my first tax year of having to record trades on Schedule D. My question is: Can commissions from BOTH the purchase AND the sale of a stock be added to the cost basis?

    Most of what I read says that cost basis is the amount of the purchase plus any expenses related to the purchase (like commissions), but I can't find anything that says that commissions from the sale can also be added to the cost basis.

    One person I talked to said that "yes" commissions from the sale can also be added because otherwise you would be taxed twice on that money. Any idea what this means?
  2. Surdo


    File the net amount of the PURCHASE and SALE, which includes the commission/SEC fees to confuse you even more, on your Schedule D.

    They are NOT deductible since they are already included in your basis and you would be deducting them 2X!