Do stock losses include the losses from broker fees ? (For tax purposes)?

Question

Any ideas ? Assuming you can claim losses from stock market purchases in which you lost money can be claimed as losses on income tax ?

Answer 1

The commission is computed in the price of the stock buy or sale.  It is part of the cost and is insignificant in discount broker transactions. $10 for an on line transaction.  The "losses from brokers fee" is a foreign concept to me.  But, if you talking about full service brokerage houses, I always paid in the inflated commission many years ago.

Answer 2

Yes.  The broker fee is also deducted from any gains.  The rules are stated on the Schedule D.

Answer 3

Yes,  you use the total cost of buying the stock, which includes commissions/fees.

So when you sell it, your profit is what you net, which is the gross proceeds of the sale less any commissions/fees.