"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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