While filing tax return do we include e-trade commission while accounting for capital gain and losses?
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Hi, I'm filing my income tax return and I bought & sold some securities on e-trade. E-trade sent me the tax document which shows the sale price and the cost basis for those securities. However, The commission is not included in the cost which e-traded charged me to buy and sell those securities. Should I add the commission in the cost basis or will i ignore it? Can anyone please answer me cuz i don't want to get in trouble later... Thank you :)
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Answer:
Check your buy tickets. They should reflect: 1. Name of the stock 2. Purchase date 3. Number of shares 4. Price per share 5. Commission 6. Total cost Good luck.
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Other answers
Etrade does include the commission cost, but doesn't list it as an individual expense. Go with their numbers.
Bumblebee
Etrade does include the commission cost, but doesn't list it as an individual expense. Go with their numbers.
Bumblebee
Check your buy tickets. They should reflect: 1. Name of the stock 2. Purchase date 3. Number of shares 4. Price per share 5. Commission 6. Total cost Good luck.
Great Returns 3x
I do believe you have remembered exactly your cost basis and sales price. So if on 1099-B form, it does not show your commission, you could report it on form 8949: 1/ Check box A on part 1 if short term, part 2 if long term 2/ Enter exactly your sales price and cost basis from your 1099-B on column (e) and (f), enter code O for column (b), enter your commission in negative amount on column (g) , for example: (50) http://www.irs.gov/pub/irs-pdf/f8949.pdf Instruction from page 8: http://www.irs.gov/pub/irs-pdf/i1040sd.pdf 3/ On schedule D : Here is an example: Column (e) sales price = 3,000. From 8949 Column (f) cost basis = (2,000). From 8949 Column (g) Adjustments = (50). From 8949 Column (h) Gain or loss = 950. Combine e + f + g http://www.irs.gov/pub/irs-pdf/f1040sd.pdf Hope this helps!
htm182111
I know that the sales proceeds on the 1099-B from Etrade already has the commission subtracted.
Lynne
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I do believe you have remembered exactly your cost basis and sales price. So if on 1099-B form, it does not show your commission, you could report it on form 8949: 1/ Check box A on part 1 if short term, part 2 if long term 2/ Enter exactly your sales price and cost basis from your 1099-B on column (e) and (f), enter code O for column (b), enter your commission in negative amount on column (g) , for example: (50) http://www.irs.gov/pub/irs-pdf/f8949.pdf Instruction from page 8: http://www.irs.gov/pub/irs-pdf/i1040sd.pdf 3/ On schedule D : Here is an example: Column (e) sales price = 3,000. From 8949 Column (f) cost basis = (2,000). From 8949 Column (g) Adjustments = (50). From 8949 Column (h) Gain or loss = 950. Combine e + f + g http://www.irs.gov/pub/irs-pdf/f1040sd.pdf Hope this helps!
htm182111
I know that the sales proceeds on the 1099-B from Etrade already has the commission subtracted.
Lynne
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