Scrub Lots and Capital Gains

[John Ralls]

On Dec 10, 2011, at 12:08 PM, David T. wrote:

> John,
> 
> According to the Motley Fool website (http://www.fool.com/personal-finance/general/2007/04/18/deducting-commissions.aspx) the sales commission is deducted from gains. I thought that's what I said?

David,

Maybe we're misunderstanding each other. In US tax law, capital gains are calculated as the total proceeds (sale price less commissions and fees) minux the total cost (purchase price plus commissions and fees).

Yes, you're right: the sale amount is net and the purchase amount is gross.


Regards,
John Ralls