The IRS does not allow you to write off transactions fees, such as brokerage fees and commissions, when you buy or sell stocks. Instead, you can add the amount of those fees to the purchase price of your stock. The purchase price plus the cost to acquire your stock equals your cost basis. You can also reduce the amount you received from selling your stock by the amount of your transaction fees.

Even though you can't deduct your transaction fees, you can reduce your taxable gain, or increase your taxable loss, by properly figuring your cost basis.

Here's a more information concerning the B, while it does not give you a credit or deduction unless you are a broker it is necessary to report a B for record purposes: Your broker, mutual fund company or other financial institution will send you this form to report the sale of stocks, mutual funds, bonds and other securities.

Each Form B reports the details of one sale to the IRS. When reported on a consolidated tax statement, you may see a list of multiple sales, each line item representing a single sale. The form has new boxes so the IRS can collect cost basis information.

New reporting rules require both cost basis and date of acquisition information for each sale. The IRS will now verify that the correct amount of gain or loss is reported, and that the correct dates of acquisition and sale are reported. For securities held prior to , some firms may show information that could be different from your records.

Fees v. commissions: Different tax advantages

Be sure to verify what is reported on the form with your records. Contact your financial firm if you have questions or your documents show other information about what was reported.

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Submit a question Check notifications Sign in to TurboTax AnswerXchange or. Back to search results. Asked by sararahrooh TurboTax Premier Options Edit Ask for details Archive.

Answer 5 people found this helpful The IRS does not allow you to write off transactions fees, such as brokerage fees and commissions, when you buy or sell stocks. Was this answer helpful? TurboTax Tax Support Agent. No answers have been posted.

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