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From: bill@utastro.UUCP (William H. Jefferys)
Newsgroups: net.invest,net.taxes
Subject: Re: Are mutual fund loads deductible?
Message-ID: <155@utastro.UUCP>
Date: Tue, 10-Dec-85 12:13:13 EST
Article-I.D.: utastro.155
Posted: Tue Dec 10 12:13:13 1985
Date-Received: Wed, 11-Dec-85 21:43:29 EST
References: <1777@uwmacc.UUCP>
Distribution: net
Organization: U. Texas, Astronomy, Austin, TX
Lines: 26
Xref: linus net.invest:929 net.taxes:816
Summary: Mutual Fund Loads are Not Deductible

In article <1777@uwmacc.UUCP>, jwp@uwmacc.UUCP (Jeffrey W Percival) writes:
> If I buy into a loaded mutual fund, can I deduct the
> amount of each payment that pays the load?
> 
> (Without going to jail, that is!)

NO.

> 
> Oh yes, and are stockbroker's commissions deductible?

NO.

Here is how commissions/loads affect your taxes.  When you *sell* the
securities, compute your net profit by subtracting the total you paid
for them (including commissions) from the net amount you received upon
sale (as affected by any commissions upon sale).  If this is greater
than zero, you have a capital gain and must pay tax on it.  If it is
less than zero, you have a capital loss and may deduct it in the
year of sale (up to a maximum of, I think, $3000).  If your loss is
greater than the maximum, you can carry the loss forward to later
tax years.  See a good tax guide for details (e.g., Lasker's)

Sometimes the seller will pay a transfer tax.  Under present law,
the transfer tax is deductible, but if you deduct it you cannot
also use it as a reduction of the net amount you receive on sale.