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REDDIT

Stocks tax question

A
Feb 17, 2025 · 01:51

Hoping someone can help me understand this better.

Say I purchase a stock, own it for some period of time, sell it, and use that money again to purchase different shares of a different stock.

I may decide to do this different times to diversify the money across different companies.

Overall, my net capital gains or losses is a net negative.

My question is: what do I pay taxes on here? The proceeds, the cost, or the net negative or positive gains/loss?

I ask because the proceeds number is scary. It looks like $75k, but in total on robinhood I only have like $24k. So it seems like an impossible number to me.