Effect of Proceeds on Taxes

[cp44444]

Is there a functional difference between the tax on the following two trades:

1. Buy 1000 shares at $28 ($28000); Sell 1000 shares at $29 ($29000); proceeds $1000.

2. Buy 1000 shares at $2.8 ($2800); Sell 1000 shares at $3.8 ($3800); proceeds $1000.

I want to make sure that example 1 does not carry more tax burden due to higher cost basis. In this example, the trader is using a commission-free brokerage. Is there any way example 1 would cost the trader more if he/she isn't borrowing any $?

Thank you!

[robtm]

In your examples the tax implications would be the same. You would be taxed on the increase amount when you sell. The cost basis is only used to determine how much you made (or lost) when you sell.