Where to enter the commission fees for stock sales?

Forum|Forum|5 years ago
February 13, 2021
2 replies
0 views

Is the sale stock fee a part of cost?

TurboTax Premier Online

ColeenD3

Yes, it is added to the basis.

When you click on the " Learn More" while in the program, you will get additional information about basis.

Box 1e - Cost or other basis Learn more

Anonymous

I have a misc. fee that says "...these amount are not reported to the IRS. They are presented here for your reference when preparing your income tax."

Can I deduct these fees anywhere?

WendyN2

No, as these fees that you pay a broker to purchase an investment, such as commissions, are not deducted as a miscellaneous itemized deductions. You essentially receive a deduction for these fees when you sell the investments, as you subtract the cost basis from the sale amount to arrive at the amount of taxable gain.

howjltx1

My question is for stock sells, does TurboTax automatically add in the commission to the cost basis which on my consolidated tax TDamerica form which displays this information. Or do I need to manually do this for every stock sell?

JulieS

No, TurboTax imports the information that is provided by the broker on the 1099-B, they don't "add" anything to it.

That being said, in nearly all cases where a broker charges commission, they add the commission to the basis of the stock, so it is already on your 1099-B.

If you have sales on a 1099-B and you are certain that you were charged commission and it was not included on your 1099-B, this is how to enter it in TurboTax:

Select Federal from the left side menu.
Select Wages & Income toward the top left.
Scroll down the list and look for Investment Income.
Find Stocks, Mutual Funds, Bonds, Other and click on Start or Update to the right.
On the screen titled, Did you get a 1099-B or brokerage statement for these sales? answer Yes.
On the screen titled, Tell us about this sale, answer I'll enter one sale at a time.
Fill in your information about the sale.
On the next screen Let us know if any of these situations apply to this sale, check the first box and enter the amount of the commission on the sale.