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Financial Planning / Tax Strategies


Subject:  Re: rebated commissions Date:  11/2/2000  5:34 PM
Author:  TMFTaxes Number:  41442 of 127753

<<I just opened an account at Waterhouse and got three free trades.>>


<< If I buy a stock and pay the $12 commission, it gets credited back to my account at the end of the month. The question is, do I included it in my cost basis for the stock I buy, or is it not figured in since it is credited back to my account?>>

Since you'll get those commissions back in the form of a rebate, they should NOT be added to the cost of your stock when computing your basis. In effect, you receive the trade as a freebie. Good for you.

TMF Taxes

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