Expenses of sales and commissions would be added to your original cost basis to arrive at the amount to enter for Cost or other basis
. The TaxACT program does not ask for these items separately. Therefore, you will want to keep detailed records to support this entry.
Per IRS Publication 550 Investment Income and Expenses
, pages 67-68:
Form 1099-B transactions. If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B (or substitute statement) from the broker. Use the Form 1099-B (or substitute statement) to complete Form 8949. If you sold a covered security in 2013, your broker should send you a Form 1099-B (or substitute statement) that shows your basis. This will help you complete Form 8949. Generally, a covered security is a security you acquired after 2010.
Report the gross proceeds shown in box 2a of Form 1099-B as the sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. However, if the broker advises you, in box 2a of Form 1099-B, that gross proceeds (sales price) less commissions and option premiums were reported to the IRS, enter that net sales price in column (d) of either Part I or Part II of Form 8949, whichever applies.
Include in column (g) any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, unless you reported the net sales price in column (d). If you include an expense of sale in column (g), enter “E” in column (f).
[Please see this section of the publication for examples.]
To make this adjustment for expenses of sale in the TaxACT program:
- From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
- Click Investment Income to expand the category and then click Gain or loss on sale of investments
- Click Capital gain or loss (Form 1099-B)
- Click Add to create a new copy of the form or click Review to review a form already created
- The program will proceed with the interview questions for you to enter or review the appropriate information
If, on the screen titled Investment Sales - Transaction Details, you entered the GROSS sales proceeds instead of the NET sales proceeds, then you will need to make an adjustment. On the screen titled Investment Sales - Adjustment Code(s), select Code "O" from the drop down list. On the following screen, you will enter the amount of the sale expenses as a negative adjustment. This will increase your overall basis, thus reducing the gain (or increasing the loss).