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Which of the following, when paid to manage investments that produce taxable income, is a deductible expense?

Commissions paid on sales of stock.
Cost of attending an investment-related seminar.
Cost of investment advice.
Cost of traveling to attend a shareholders’ meeting.

Mark for follow up Question 29 of 50. Which of the following, when paid to manage s that produce taxable income, is a deductible expense? Commissions paid on sales of stock. Cost of investment advice Cost of to attend a shareholders ng
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Answer #1

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  • The correct answer is Option #1: Commissions paid on sales of stock is a deductible expense.
  • Such commission expense is deducted from total sales proceeds when investments are sold to earn capital gain that are taxable.
  • Other options are expenses that are not deductible for the said purpose.
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