The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: rebated commissions||Date: 11/2/2000 5:34 PM|
|Author: TMFTaxes||Number: 41442 of 121219|
<<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.
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