How are exchange fees handle tax wise?

April 21st, 2018, 11:34 PM

Hi

I know that commissions are added to the cost basis of a transaction, but I'm having trouble finding how the fees that make up the rest of the RT cost are handled in terms of tax liability.

Are they added to the cost basis as well? Or are they deductible as a miscellaneous itemized deduction on Schedule A subject to the 2% of AGI floor limit? Does it depend on the fee?

Any info would be much appreciated

April 22nd, 2018, 09:03 AM

For futures your 1099-B from your Broker will be net of all fees, so you report what's on the 1099-B and don't have to do anything else.

mattz · April 22nd, 2018, 05:23 PM

caleb

Hi

I know that commissions are added to the cost basis of a transaction, but I'm having trouble finding how the fees that make up the rest of the RT cost are handled in terms of tax liability.

Are they added to the cost basis as well? Or are they deductible as a miscellaneous itemized deduction on Schedule A subject to the 2% of AGI floor limit? Does it depend on the fee?

Any info would be much appreciated

As mentioned above, the 1099 from your FCM provides the net/net calculations of your P&L.
You can also use your month-end calculations in order to see your P&L monthly along with each trade.
I would suggest using an accountant that knows the tax benefits of futures (60% long-term, 40% short-term) for capital gains reporting.

Thanks,
Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

How are exchange fees handle tax wise?

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How are exchange fees handle tax wise?