Series 50: Commissions And Fees

Commissions and Fees

Any fees or commissions charged to facilitate an investment transaction are taken into consideration when determining the cost basis of a capital asset, such as a municipal security. In a nutshell, the cost associated with buying a security is added to the tax basis, while the cost associated with selling a security is subtracted from the proceeds of the sale.

For example, if someone buys a bond for $1,000 plus a $10 commission, the tax basis of that bond against which taxable profits will be meas