topic Can I deduct fees for buying and selling stock? in Investors & landlords

Can I deduct fees for buying and selling stock?

natchezblues — Mon, 03 Jun 2019 18:36:10 GMT

I pay $6.95 for each trade I make and want to know if I can claim these charges

No, the IRS does not allow you to write off transactions...

Leonard — Mon, 03 Jun 2019 18:36:11 GMT

No, the IRS does not allow you to write off transactions fees, such as brokerage fees and commissions, when you buy or sell stocks.

Instead, you can add the amount of those fees to the purchase price of your stock.

The purchase price plus the cost to acquire your stock equals your cost basis.

Re: No, the IRS does not allow you to write off transactions...

krnba — Mon, 14 Dec 2020 18:40:40 GMT

My question is would the costs of selling and buying be reflected on the 1099? I bought a fund that has an annual $250 fee.. Will this be reflected on the 1099?

Re: No, the IRS does not allow you to write off transactions...

Opus 17 — Mon, 14 Dec 2020 19:14:38 GMT

@krnba wrote:

My question is would the costs of selling and buying be reflected on the 1099? I bought a fund that has an annual $250 fee.. Will this be reflected on the 1099?

Expenses associated with buying, holding and selling stocks, mutual funds and other investments, are not deductible for tax years 2018-2025. That includes trading fees, management fees, and loads or commissions. Those fees won't be reported on your 1099-B because they have no affect on your income taxes.

Re: No, the IRS does not allow you to write off transactions...

Critter-3 — Tue, 15 Dec 2020 00:38:41 GMT

The cost to buy or sell stocks is already reflected in the net gain/loss when you sell the underlying stock ... review your broker statement showing the total cost basis and/or ask the broker to explain how the cost is entered on the reporting forms.

Re: No, the IRS does not allow you to write off transactions...

fanfare — Wed, 23 Dec 2020 19:04:26 GMT

your commissions, if any, and fees are added in automatically to your cost and proceeds. there's no special notation.

yearly maintenance fees are listed separately as a deduction to your account balance.

Re: No, the IRS does not allow you to write off transactions...

MSCO9241 — Wed, 23 Dec 2020 19:16:35 GMT

yearly maintenance fees are an investment expense. prior to 2018 they were a schedule a deduction in the section that was subject to a reduction of 2% of adjusted gross income. based on tax law changes they are no longer deductible for the years 2018 through 2025 as the law stands now