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posted Jun 1, 2019 1:14:49 PM

Brokers charge fees to buy/sell securities. I am employing them for the purpose of generating income. How can I claim these costs when I report my sell transactions?

My brokers charge management fees to help direct investment strategies and perform buy/sell securities transactions. In the past this was a deductible investment expense. With the new standard deduction of $24k, I understand that goes away.
I still pay these fees, and those fees are taxable income to my brokers. As such, I wonder whether I can claim them as a reduction in basis (or something else) when I report my sell transactions.
It seems to me, I am employing personnel for the purpose of generating income. That is a bona fide expense. Trade costs are still a basis reduction...right?
You see any chance of offsetting my expenses to gains in this manner?
It's been suggested I may be able to pay these fees (for both regular and retirement accounts) using IRA funds, and thereby reduce my RMD in the future. Is that allowed?

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1 Best answer
Not applicable
Jun 1, 2019 1:14:50 PM

nope they are non deductible. i'm in the same situation.   however, if you have retirement accounts have the fees pertaining to them deducted there.   this has the effect of eventually reducing RMD's 

2 Replies
Not applicable
Jun 1, 2019 1:14:50 PM

nope they are non deductible. i'm in the same situation.   however, if you have retirement accounts have the fees pertaining to them deducted there.   this has the effect of eventually reducing RMD's 

Not applicable
Jun 1, 2019 1:14:52 PM

nope they are non deductible. i'm in the same situation.