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I bought 1000 of stock A at price of 20. Two hours later, the stock price for A went down to 17, and I bought 1000 more of them, and two hours later, the stock price reached 19, and I sold all 2000 stocks.

Will I be taxed on the profit: 2000*19 - 1000*17 - 1000*20 = 1000 or some other amount?

Any help would be greatly appreciated.

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    Your calculation is correct. $1,000 STCG. Jun 27, 2018 at 15:25

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Your math is correct, but you'll also deduct from your gain any fees/costs associated with making those trades, so unless you made those trades for free, you'll have slightly less than $1,000 in short-term capital gain from this series of transactions.

When selling all shares, it's total proceeds from sale less cost to acquire/sell those shares. The order of buys/sells (FIFO/LIFO) only matters when selling portions of positions.

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  • Also, if you have other transactions (more exactly, other dispositions) in the same year, it is the net totals (gains minus losses) for the year that is subject to tax. Jun 28, 2018 at 0:08

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