"That is actually what my accountant told me that i need to pay tax on 20 000 shares what i sold.
im new to this so i dont understand it very well"
why is it difficult to understand -- he's told you??
you are the one who is confusing yourself by adding complexity to your thinking -- actually it's confusion rather than complexity
"but to me that doesnt make sense as i made profit of only $7000 according to average buy and sold price in that year. "
End of year taxable income calculation, page-18
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