Do I include the brokerage fee incurred on sale of shares, with the proceeds of the sale when calculating Capital Gains. My accountant ldid not include it and so I was wondering if it is a deduction or expense put somewhere else. Does this vary if it is a Trust (ie deceased estate tax return)?
My understanding (as a non-expert) is that brokerage should be treated the same way as in a normal individual tax return. It forms part of the cost base of the purchase and is deducted from the proceeds of the sale. Calculating capital gains/losses this way means there is no need to record brokerage separately as a deduction.
My understanding (as a non-expert) is that brokerage should be treated the same way as in a normal individual tax return. It forms part of the cost base of the purchase and is deducted from the proceeds of the sale. Calculating capital gains/losses this way means there is no need to record brokerage separately as a deduction.
Hi @PamS52
Yep! Brokerage fees form part of the second element of your cost base. You use this to work out your total capital gain.
It doesn't vary depending on the entity type, either. The same cost base rules apply to individuals, to companies, to partnerships, and to trusts.
You can read about how to work out the cost base for a capital gain on our website.
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