Tax time - how to handle commissions

Discussion in 'Taxes and Accounting' started by Hook N. Sinker, Oct 6, 2006.

  1. Some brokers have a low stock trading commission rate, perhaps $ 1 / trade and charge approximately $ 10 / month fee. When I file schedule d with the IRS the commissions are included in the stock transaction costs but the $ 10 / month fee is not.

    Does anyone know how I might deduct the $ 10 / month fee on IRS schedule d?
  2. Man, only 120 dollars.
  3. Ooh I never even thought of that.

    I still want to deduct it if I can though.
  4. I am going to say this very strongly. Loudly and clearly. Please take notice to what I am about to say.

    DO NOT MESS UP YOUR TAX RETURNS. Some months back, I received a notice from the IRS about a return that I had messed up for 2004. There were a few accounting errors from some of the trades. If you have ever manually calculated a tax return on the trades, you will realize that its very time consuming and that one mistake throws the entire thing off.

    Lets just say that I have been dealing with the IRS for several months now trying to get this straight. It is very difficult to deal with them as they are so busy there is no quick resolution. There seems to be no solution in sight.

    DO NOT MANUALLY CALCULATE THE TRADES YOURSELF. DO NOT DO IT. There are a few programs on the internet that will calculate these trades for you. You can find them by searching google. They cost about $300, but I can tell you, THEY ARE WELL WORTH IT. Ask yourself, do you want to be dancing around with the IRS for several months about trades you made two years ago?

    BUY THE SOFTWARE. Sorry, Im not going to advertise any software program on this message board. Just go to google and you can do all the searching yourself.
  5. Surdo


    Schedule "C", NON-Reimbursed Business expense.
    Don't go too nuts on this schedule without much income!

    el surdo
  6. Bob111


    maybe investment expences?
    i also have question for tax pros-can i deduct subscription for news and data services?

    Thank you!
  7. Schedule A Misc Expenses subject to the 2% floor
  8. Investment Expenses - Schedule A Line 22.

    Note: You can deduct magazine subscriptions that relate to investments there as well as internet connections, financial services fees etc....
  9. Eagle - any suggestions on what software since you obviously are going thru this now?