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Double Transaction Fees

I am currently a foreign resident. When I buy or sell a US security I do it through my bank, who use an American brokerage to do the transaction. On my 1099 forms the buy and sell prices include the transaction fees. However, my bank adds a transaction fee as well, thereby increasing my actual costs and decreasing my actual proceeds.

When I file my tax reports, if I use the 1099 values for cost and proceeds I seem to have made less of a profit (or more of a loss) than I actually did. But if I take into account my bank fees, to show my actual gain/loss the 1099 numbers reported to the IRS will not match, and they may come screaming after me.

Is there any good way to handle this?

Reply to
Lawrence Israel
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Use the adjustments in columns (f) and (g) of Form 8949.

Ira Smilovitz, EA

Reply to
ira smilovitz

That enables me to correct either the cost or the proceeds. What if I need to correct both? Correct one of them, with the amount being the sum of the two corrections?

Reply to
Lawrence Israel

In order to explain any adjustment to gain or (loss) in column (g), enter the appropriate code(s) in column (f). See How To Complete Form 8949, Columns (f) and (g), later. If more than one code applies, enter all the codes that apply in alphabetical order (for example, ?BOQ?). Don't separate the codes by a space or comma.

Column (g)?Adjustments to Gain or (Loss) Enter in this column any necessary adjustments to gain or (loss). Enter negative amounts in parentheses. Also enter a code in column (f) to explain the adjustment. See How To Complete Form

8949, Columns (f) and (g), later. More than one code.

If you entered more than one code in column (f) on the same row, enter the net adjustment in column (g). For example, if one adjustment is $5,000 and another is ($1,000), enter $4,000 ($5,000 ? $1,000).

Reply to
taruss

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