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When calculating the cost basis for stock, can you use both the commission to purchase the stock and the commission to sell the stock?

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June 6, 2019
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Best answer by JohnW15

You can use each separate commission for each transaction -- in determining the cost basis, and then in computing the sales price.

For example:

The tax basis of stock you purchase is what you pay for it, plus the commission you pay. Say you buy 100 shares of XYZ Inc. at $40 a share, and you pay a $100 commission. The total cost is $4,100 and the tax basis of each of your shares is $41.

If you sell the 100 shares for same $40 each, and pay $100 commission on the sale, you have a $200 loss—your $4,100 basis minus the $3,900 proceeds of the sale.

J

JohnW15Answer

Employee

You can use each separate commission for each transaction -- in determining the cost basis, and then in computing the sales price.

For example:

The tax basis of stock you purchase is what you pay for it, plus the commission you pay. Say you buy 100 shares of XYZ Inc. at $40 a share, and you pay a $100 commission. The total cost is $4,100 and the tax basis of each of your shares is $41.

If you sell the 100 shares for same $40 each, and pay $100 commission on the sale, you have a $200 loss—your $4,100 basis minus the $3,900 proceeds of the sale.