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From: jhs@druri.UUCP
Newsgroups: net.invest
Subject: Re: where do i deduct stockbroker expense?
Message-ID: <975@druri.UUCP>
Date: Tue, 30-Oct-84 11:10:23 EST
Article-I.D.: druri.975
Posted: Tue Oct 30 11:10:23 1984
Date-Received: Wed, 31-Oct-84 01:29:00 EST
References: <586@ucbtopaz.CC.Berkeley.ARPA>
Organization: AT&T Information Systems Laboratories, Denver
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  >>Subject: where do i deduct stockbroker expense?
  >>Message-ID: <586@ucbtopaz.CC.Berkeley.ARPA>
  >>Date: Fri, 26-Oct-84 19:40:44 MST
  >>This is the first year I have ever bought stocks in the NYSE.  
  >>
  >>Excuuuuuuuse my ignorance; but where do I deduct my stockbroker
  >>expense?  
  >>
  >>My guess is that if I itemize on my 1040, this is the
  >>place where I would deduct.  But what if I don't itemize?
  >>
  >>Or do I deduct the purchase and selling stockbroker expense
  >>at the time that I sell a stock?

First, itemizing is a moot point in most cases: if you have capital
gains, you must declare them (itemize); if you have capital losses,
you don't have to itemize, but you're pitching money into a black hole
if you don't.

Second, when you have a gain, you deduct brokers' commission fees as
an expense and show the net (long or short term) capital gain. If
you have a net capital loss, tough noogies--no deduction; fees are
deductible only when determining net gain.

If any gurus out there take exception to this, please post a followup
(and I'll starting filling out 1040Xs!!). 

--Jeff Shore (..ihnp4!drutx!druri!jhs)