New Brunswick Business Daily

Can brokerage commissions incurred in ESOP exercises be disallowed as capital loss due to wash sale rules?

When you exercise options on two different days within a 30 day window, do the wash sale rules kick in and disallow brokerage commissions to be claimed as capital losses?

Public Comments

1. If you sell mutual fund shares at a loss and within 30 days before or after the sale you buy, acquire in a taxable exchange, or acquire a contract or option to buy substantially identical shares, you have a wash sale. You cannot deduct losses from wash sales. The fees and charges you pay to acquire or redeem shares of a mutual fund are not deductible. You can usually add acquisition fees and charges to your cost of the shares and thereby increase your basis. A fee paid to redeem the shares is usually a reduction in the redemption price (sales price).
2. The commission was part of your basis. If you BUY within 30 days of a sale, the wash sales *will* move that loss to the second buy.