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Author: chocolicious Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121481  
Subject: 1040 and Schedule D Date: 2/23/2000 10:56 PM
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OK....This should be an easy one.....

Just want to make sure I am doing this right.

I filled out Schedule D and have a long term loss of $274.00

Now, I put (274) on form 1040 line 13.
Line 22 says "add lines 7-21". I add it up, but SUBTRACT $274 because it was a loss. Correct?? I hope so. Also, I only have a loss carryover if my losses exceeded $3000.Correct??

Thanks Much.........
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Author: chocolicious Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29789 of 121481
Subject: Re: 1040 and Schedule D Date: 2/23/2000 11:00 PM
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One More Thing......

I add the commission from a stock sale to my cost basis? Correct?

thanks

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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29792 of 121481
Subject: Re: 1040 and Schedule D Date: 2/23/2000 11:17 PM
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I filled out Schedule D and have a long term loss of $274.00

Now, I put (274) on form 1040 line 13.
Line 22 says "add lines 7-21". I add it up, but SUBTRACT $274 because it was a loss. Correct?? I hope so. Also, I only
have a loss carryover if my losses exceeded $3000.Correct??


Looks good to me.
Ed

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Author: chocolicious Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29793 of 121481
Subject: Re: 1040 and Schedule D Date: 2/23/2000 11:31 PM
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YES!!!
Thank You

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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29801 of 121481
Subject: Re: 1040 and Schedule D Date: 2/24/2000 12:40 AM
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Your commission on selling is subtracted from your gross sales proceeds to create the Net Sales Proceeds which is your selling price which matches your 1099-B. You do not add the sales commission to your cost basis.

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Author: chocolicious Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29805 of 121481
Subject: Re: 1040 and Schedule D Date: 2/24/2000 1:21 AM
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Perhaps this is why I am confused:

I found the following in the TAX FAQ area:
"By definition, the expenses incurred in purchasing or selling a capital asset (stock, in this example) are capital costs, and are required to be added to or subtracted from the basis (or cost, for tax purposes) of the stock."

Thanks


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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29807 of 121481
Subject: Re: 1040 and Schedule D Date: 2/24/2000 1:39 AM
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"By definition, the expenses incurred in purchasing or selling a capital asset (stock, in this example) are capital costs, and are required to be added to or subtracted from the basis (or cost, for tax purposes) of the stock."

"A commission paid by a trader in purchasing securities is part of the cost of the security and may not be deducted as a business expense. A commission paid by a trader in selling securities is an offset against the selling price and may not be deducted as a business expense, except by a dealer in securities, and then only as to securities held for sale to customers." CCH U.S. Master Tax Guide 2000.

I guess TMF Taxes (Roy) needs to clarify his FAQ since selling commissions are subtracted from the gross proceeds in the case of stocks, not added to the basis.

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Author: chocolicious Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29810 of 121481
Subject: Re: 1040 and Schedule D Date: 2/24/2000 1:57 AM
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Thanks for the clarification!!!
Much appreciated.

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29901 of 121481
Subject: Re: 1040 and Schedule D Date: 2/24/2000 9:46 PM
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<<"A commission paid by a trader in purchasing securities is part of the cost of the security and may not be deducted as a business expense. A commission paid by a trader in selling securities is an offset against the selling price and may not be deducted as a business expense, except by a dealer in securities, and then only as to securities held for sale to customers." CCH U.S. Master Tax Guide 2000.

I guess TMF Taxes (Roy) needs to clarify his FAQ since selling commissions are subtracted from the gross proceeds in the case of stocks, not added to the basis.>>

You're right, Roo. It might need some clarification. Virtually all brokers report "net" sales now days. Back in the "good old days", most brokers reported the "gross" sales price...which meant that the sales commission was reported as an adjustment to basis.

Which, as you know, is all that I was really trying to point out in my post.

But, since virtually all brokers now report "net" sales, I should likely make some clarifications. Something to do after April 17th.

TMF Taxes
Roy

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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29924 of 121481
Subject: Re: 1040 and Schedule D Date: 2/24/2000 11:13 PM
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I should likely make some clarifications. Something to do after April 17th.

TMF Taxes
Roy


LOL. Don't you just love life on hold until after April 17th (August 15th, September 15th, October 15th), pick your due date. ;^)

I hope you are keeping a list of all the to-dos after (fill in the chosen due date).

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29978 of 121481
Subject: Re: 1040 and Schedule D Date: 2/25/2000 12:07 PM
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<<I hope you are keeping a list of all the to-dos after (fill in the chosen due date).>>

Right...I think I have them somewhere. I'm writing them all down. Somewhere.

But I'm sure that y'all will remind me of this stuff after April, eh?? :-)

TMF Taxes
Roy

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