Book clsoing [was: Re: Addition of HBCI support, Maturity of 1.7-branch, next stable release time frame?

Michael T. Garrison Stuber
Wed, 17 Apr 2002 20:16:17 -0400

The original purchase commision is part of your basis for tax purposes, 
though it certainly isn't part of your position per se.  Your taxable gain 
or loss is the net proceeds (sales proceeds minus sales commission) minus 
your basis.  What this ends up meaning is that both the purchase commission 
and the sales commission are considered for tax purposes.  The upshot here 
is that an advanced basis report would allow provide some sort of logic for 
including commissions as well.  I would see this working by being able to 
select a set of "commission" accounts in the report options screen.  When 
the basis report ran it would include any values sent to a commission 
account for any non-zero lots.  Of course this does present a problem for 
partial sales of lots.  I need to check on this, but it seems reasonable to 
allocate the commission to the basis on a per share basis.  That is, if I 
bought 100 shares of XYZ Corp and paid $50 commission, my commission per 
share would be $.50.  Thus if I sell 50 of those shares, the portion of the 
commission to include in the basis would be $25.

--On Wednesday, April 17, 2002 02:35:07 PM -0400 Derek Atkins 
<warlord@MIT.EDU> wrote:

> Dave Peticolas <> writes:
>> On Wed, 2002-04-17 at 11:12, Derek Atkins wrote:
>> > Commission is never taken into account in stock positions.  That
>> I'm not sure that's true. Isn't the commission you pay to the
>> brokerage considered to be part of the cost basis?
> Commission at purchase time may be considered.. I don't know offhand.
> Commission at sale time is unclear, since you don't know what the
> commission will be when you compute your position.  A position is
> usually computed based on your current holdings.
>> dave
> -derek
> --
>        Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
>        Member, MIT Student Information Processing Board  (SIPB)
>        URL:    PP-ASEL-IA     N1NWH
>        warlord@MIT.EDU                        PGP key available
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