2007-02-02 05:15:02 · 4 answers · asked by Donna H 1 in Business & Finance ➔ Investing
Yes, you can deduct your costs to trade including the costs of the software you use.
2007-02-02 05:47:05 · answer #1 · answered by a 4 · 0⤊ 0⤋
Trading costs - commissions - are added to the price of the stock when you buy and when you sell. See Schedule D, "Sales Price" and "Cost and other basis"
For example, you bought 100 shares of XYZ @ $10/shr = $1000 + $13 = $1013 cost of 100shares of XYZ.
Later you sold XYZ for $20/shr. 100 X $20 = $2000 - $13 = $1987.
Your profit is $1987 (amount received) - $1013 (amount paid) is $974 (taxable gain)
2007-02-02 13:32:41 · answer #2 · answered by PALADIN 4 · 2⤊ 0⤋
Yes, If you buy 1000 shares of stock at $20 per share = $20,000 + $13 commission = $20,013 cost basis. When you sell your stock for lets say $30 per share, you get $30,000 - $13 commission = selling amount $29987. Capital gains declared will by $29987 - $20013 = $9,974.
2007-02-02 13:26:43 · answer #3 · answered by gosh137 6 · 3⤊ 0⤋
Key is can only take the cost once you sell. Not a deduction by itself.
2007-02-02 15:11:17 · answer #4 · answered by vegas_iwish 5 · 0⤊ 0⤋