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@BobKamman wrote:

Gross proceeds were never part of the definition.  Code Section 61 states:

(3) Gains derived from dealings in property;

IRS would just hassle people with higher proceeds because they hoped to shake some with profits out of the tree.  As I recall, they did this with even greater vigor in years the market went down.  Now, it's easier for them to spot those with gains, so the number of AUR notices has diminished.  

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Ah those were the good ol' days.  I lost count of the number of new clients I got because the IRS sent them a CP2000 wanting to tax them on 100% of their gross proceeds.  Many of them had losses so we could respond with "thank you for bringing this to my attention, please see the attached Schedule D and send my refund check to the following address . . ."