Commission split buying stocks?

[Dave Reed]

On Tuesday 02 November 2004 10:10, Derek Atkins wrote:
> Hi,
> 
> Please be sure to CC gnucash-user on all replies...
> 
> EarlHawgwallop at netscape.net writes:
> 
> > Thanks. What happens is GNUCash substracts the cost of the
> > commmission from the trade. The account is an asset-brokerage-stock
> > account. I'm trying to record the split such that the commission is
> > subtracted from asset-brokerage-cash, and added to
> > expense-commissions. U.S. locale, USD currency.
> >
> > This could (likely) be my error. Any examples or hints would be most
> > appreciated. Thanks again.
> 
> It's a three-split transactions.  Let's say you sell 10 shares for $10
> each and then pay a $19.95 commission.  This would imply:
> 
>      Stock    10  10       100
>      Bank                       80.05
>      Commission                 19.95
> 
> -derek


I know this makes it easier to track exactly how much you've paid in
commissions and the exact prices you bought/sold at, but doesn't it
make your taxes more difficult. I always enter the price that includes
the affect of the commission since that is what affects your basis for
tax purposes.

For the above example, I would say I sold the 10 shares at $8.005 a
share. The difference is usually not that much, but the above
commission is pretty large relative to the amount sold.

Is what I'm doing wrong?

Dave