Question

Can you deduct a premium paid on a brokered CD as a capital loss?

Forum|Forum|6 years ago
January 14, 2020
1 reply
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For the past few years I have paid premiums to acquire brokered CDs. If held to maturity, are brokered CDs considered capital assets whereby I can deduct the original premium paid (e.g. $105,000 for $100,000 in face value) as a capital loss?

Thank you for any help.

SusanY1

The premiums paid are not a capital loss, but you do count them as part of the basis in your investment. When your CDs are sold or mature, the amount paid will reduce your gain or increase your loss, whichever applies.

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