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I understand that when a stock is bought the commission is added to the cost of the stock to determine the cost basis. My question has to do with selling a stock. In that instance, is the commission charge to sell, plus the SEC and /or other fees added to the basis so that the Capital Gain or Loss can be determined correctly??
I am thoroughly confused on this, as I seem to have read conflicting opinions, pro and con on this subject.
Any comments will be appreciated. Thanks!!
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So far as I know, you have two options: either include the commissions both when you buy and when you sell to figure out the net gain or loss, or omit them. If you bought and sold the shares through the same broker (discount or otherwise) the commission fee should be the same. The safer route is probably just to take the actual buy and sell price (multipled by the number of shares, obviously) and omit the fees.
-Tim
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