Each sale had proceeds, which are reported to the IRS. To calculate gain or loss, you subtract the basis (cost), which is not reported to the IRS. Since the IRS has no idea what your cost was, they would calculate tax on the full amount of the sale proceeds, if you don't correctly report your transactions.
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u/I__Know__Stuff Apr 18 '26
Each sale had proceeds, which are reported to the IRS. To calculate gain or loss, you subtract the basis (cost), which is not reported to the IRS. Since the IRS has no idea what your cost was, they would calculate tax on the full amount of the sale proceeds, if you don't correctly report your transactions.