On 14 Dec 1999 09:04:24 +0200, the world broke into rejoicing as
Alexandru Harsanyi <[EMAIL PROTECTED]> said:
> I'm not an accounting expert, but I think the brokerage fee is
> actually an expense and not an asset (If you purchased 100 shares at
> $10, you sill have them but the brokerage fee is lost :). You should
> create an expense account, say "STX_fees" and record the fee to that
> account.
>
> You can create a two-split transaction, a split to record the purchase
> of the shares (from your bank account to STX) and a split to record
> the fee from your bank account to STX_fees. This way, in your bank
> account, only one transaction will be shown.
>
> It would be nice if you could create the STX_fees account as a
> subaccount of STX, so they are kept together, but unfortunately this
> is not possible.
In Canada and the US, brokerage fees are *not* expensed until the time
that a security is *sold.* (At least, not for the average investor;
someone doing commercial trading may be treated a bit differently...)
Thus, if you pay $500 for the stock, plus $50 for brokerage fees, then
this should indicate that the cost of the investment was $550.
The treatment may vary from country to country based on whatever the
local tax authorities require, but I rather suspect that including the
brokerage fee as part of cost will be the most common treatment...
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