smith@umn-cs.UUCP (11/26/84)
I just re-read my reply of many days ago on the subject of 'deducting stockbroker expenses.' Sorry for the obscure English. Let me try again. When I sell some stock, I owe tax on the profit I make. The amount of profit is equal to the sale price of the stock minus the purchase price. I compute purchase price as the stock price PLUS the broker's fee; the sales price is the stock price MUNUS the broker's fee. So, the profit is the change in stock price MINUS the broker's fee each time. If you end up with negative profit, great! In this case I don't deduct the broker's fee until the stock is sold. I don't know about deducting broker's fees on Schedule A as an itemized deduction involved in investments, since I've never itemized in the same year that I've sold stock (this year, though, I will). It may save more taxes to deduct on Schedule A since 'long term capital gain' is taxed at a special (low!) rate. The only limitation I'd be sure of is that you have to deduct an expense in the year it was incurred, so I could deduct fees to sell but not the fees for buying the stock years before. Rick. red, so I could deduct fees to sell but not the fees for buying the stock years before. Rick. orry for the obscure English. Let me try again. When I sell some stock, I owe tax on the profit I make. The amount of profit is equal to the sale price of the stock minus the purchase price. I compute purchase price as the stock price PLUS the broker's fee; the sales price is the stock price MUNUS the broker's fee. So, the profit is the change in stock price MINUS the broker's fee each time. If you end up with negative profit, great! In this case I don't deduct the broker's fee until the stock is sold. I don't know about deducting broker's fees on Schedule A as an itemized deduction involved in investments, since I've never itemized in the same year that I've sold stock (this year, though, I will). It may save more taxes to deduct on Schedule A since 'long term capital gain' is taxed at a special (low!) rate. The only limitation I'd be sure of is that you have to deduct an expense in the year it was incur_ > > I would ask my stoumn-cs> An > > I would ask my stoumn-cs> An h/]f