Kevin bought 285 shares of Intel stock on January 1, 2019, for $84 per share, with a brokerage fee of $185. Then, Kevin sells all 285 shares for $92 per share on December 12, 2019. The brokerage fee on the sale was $235. What is the amount of the gain/loss Kevin must report on his 2019 tax return?

=$1,842

Explanation:

et gain or loss from the sale of shares will be the total cost of purchasing the shares minus the amount realized from selling the shares.

The total cost of purchases (adjusted basis) cost price x shares quantity + brokerage fee

= (285 shares x $84) + $185

=$23,940 + $185

=$24,125

The net amount realized from the sale

=selling price multiplied by shares minus brokerage fee

= ($285 X 92) - $235

=26,220 - 253

=$25,967

=Gain or loss

= $25,967 - $24,125

=$1,842