If I purchase some stock for $100 and the commissions are $10, what is my cost basis in the stock?
2006-07-13 08:11:16 · 3 answers · asked by puffinscereal 2 in Business & Finance ➔ Investing
Cost basis is $110
The commission is included in your cost basis. Any fees on the account itself are not. Only fees specific to the transaction.
2006-07-13 08:45:18 · answer #1 · answered by The Krieg 3 · 0⤊ 0⤋
YES, the cost basis is your actual to buy the stock. If you paid $100 for the stock itself plus $10 commission, it actually cost you $110 to buy it.
2006-07-15 12:43:52 · answer #2 · answered by msoexpert 6 · 0⤊ 0⤋
Yes, and when you sell the stock, any fees and commisions on the sale reduce the reportable amount as well. Someone at the IRS figured out it wasn't fair to tax people on money they didn't actually make in this particular case. Wasn't that nice of them?
2006-07-13 16:12:32 · answer #3 · answered by lenny 7 · 0⤊ 0⤋