OK. I understand that brokerage commissions/fees are not deductible on my taxes. But I can add them to my cost basis?
Let’s say I buy 10 shares of a stock that is $100 per share, and pay $9.99 commission to my brokerage. So, the shares I bought are $1000 but now my cost basis is $1009.99?
So the brokerage fees just travel along as part of the cost of the stock purchases and sales?
Thanks!
-Footsox
Yes they are added to the cost basis.
Back in the old days brokers skimmed 7% and it was more significant.
"Let’s say I buy 10 shares of a stock that is $100 per share, and pay $9.99 commission to my brokerage. "
I would say it’s time for a new broker.
Broker commissions are essentially $0 these days.
At least for on-line trades.
"Let’s say I buy 10 shares of a stock that is $100 per share, and pay $9.99 commission to my brokerage. "
I would say it’s time for a new broker.
Broker commissions are essentially $0 these days.
At least for on-line trades.
Sure, but this does nothing to actually answer the OP’s question which is certainly a valid question. For all we know, the OP has some shares purchased many years ago when commissions were much higher. Regardless, the question was reasonable and has been answered. The commission is added to the basis.
OK. I understand that brokerage commissions/fees are not deductible on my taxes. But I can add them to my cost basis?
Costs associated with the purchase of an investment asset are included in the cost basis of the asset. Also, included in the cost basis are any costs associated with the asset. The gain or loss is the sale price minus the cost basis.