capital gains report Fee not deducted from gain/loss in Sell transactions

Elizabeth Simon's Avatar

Elizabeth Simon

11 Mar, 2016 12:50 AM

Hello!

I've noticed that the transaction fee is ignored in the Capital Gains Report. It should deduct the trading fee from the proceeds of the sale, thereby lowering the capital gain.

I saw a thread about this from 2010 but nothing more current. I'm running version 2015.7 1353 (a beta I believe) on a mac.

Please let me know if I'm doing something incorrectly or if this is an issue being addressed.

Thanks!
e

  1. 1 Posted by Ben Spencer on 11 Mar, 2016 01:19 AM

    Ben Spencer's Avatar

    From what I have read you "can" reduce your capital gains by subtracting the sale fees from the gains but this is an choice you would make when it comes time to file your tax return. Do you have a link to some documentation that indicates that sale fees "must" be deducted in capital gains calculations?

    Ben Spencer
    Infinite Kind Support

  2. 2 Posted by dwg on 11 Mar, 2016 06:34 AM

    dwg's Avatar

    Ben,

    I have never seen a taxation authority say you must reduce your capital gain by deducting sale costs, in fact they are generally happy if you pay more tax than you have to. However costs of both buying and selling shares are allowable adjustments to reduce your taxation liability.

    It is somewhat a contradiction and inconsistent to include buying costs as part of the initial capital costs if you do not include the selling costs to reduce the amount of the gain.

  3. 3 Posted by Ben Spencer on 11 Mar, 2016 01:20 PM

    Ben Spencer's Avatar

    There is more detailed discussion here:
    http://help.infinitekind.com/discussions/general-questions/744-capi...

    Ben Spencer
    Infinite Kind Support

  4. 4 Posted by Elizabeth M G S... on 11 Mar, 2016 01:26 PM

    Elizabeth M G Simon's Avatar

    Thanks for replying so quickly.

    Unless you want to report a higher income to the irs, and pay more tax, you will want your Cost Basis to include transaction fees. I believe the vast majority of users will want the fee deducted or at least listed in MoneyDance’s Capital Gains report so that they can adjust their cost basis.

    For what it’s worth both my brokerage reports and quicken, when I used to use it, net out the transactions costs on their statements for Capital Gains reporting to the IRS.

    As to whether or not you “have” to reduce your capital gains when reporting to the IRS, you do not, but for that matter you do not have to report your cost basis either. The IRS is more than happy to have you pay more tax. It’s the opposite that they get upset about.

    thanks,
    e

  5. 5 Posted by Elizabeth M G S... on 11 Mar, 2016 01:30 PM

    Elizabeth M G Simon's Avatar

    I did see this, I tried to click on the link to “vote” for the ticket #2720 but the link has expired. If you set up another ticket item please let me know and I’ll be happy to “vote”.

    thanks again,
    e

  6. System closed this discussion on 10 Jun, 2016 01:30 PM.

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