IAU Taxes w/Fidelity and TurboTax

Discussion of the Gold portion of the Permanent Portfolio

Moderator: Global Moderator

era
Junior Member
Junior Member
Posts: 12
Joined: Sun Nov 10, 2019 12:39 pm

Re: IAU Taxes w/Fidelity and TurboTax

Post by era » Sat Jan 11, 2020 9:23 am

Tyler wrote:
Thu Jan 09, 2020 10:49 pm
era wrote:
Thu Jan 09, 2020 9:56 pm
Tyler - For fidelity, do they assume "proper treatment" is capital gains taxed at the commodities rate? (Asking since it appears your account does the most things "automatically", probably because iShares and Fidelity have an arrangement together I believe.)
I haven't personally had a net taxable capital gain on gold in a while. But both Fidelity and Turbotax are very thorough so I have no reason to doubt their calculations.
Tyler - does what they discussed in this thread match your experience? Specifically, form 8949:

https://ttlc.intuit.com/community/inves ... /00/276121
User avatar
sophie
Executive Member
Executive Member
Posts: 3949
Joined: Mon Apr 23, 2012 7:15 pm

Re: IAU Taxes w/Fidelity and TurboTax

Post by sophie » Sat Jan 11, 2020 9:53 am

Honestly, these kinds of tax headaches are exactly why I got rid of my taxable gold ETFs a long time ago in favor of physical or Perth Mint gold. However this thread raises an interesting question: any storage, insurance etc charges need to be tracked as it's part of your cost basis in the investment! Also, not sure exactly how to handle cost basis if I were to sell and withdraw from my Perth Mint account. I expect I'd have a lot of leeway since they obviously don't have to report anything to the US IRS.

If you do want to own taxable gold in ETF form, definitely go with a gold trust like PHYS. You have to file a form every year (whether you sell or not), but when you do end up selling you will pay capital gains rates and not collectibles rate. Last I checked, the form cannot be filed electronically, thus your federal and probably also state tax returns must be filed in paper form. I would never for a second consider a standard gold ETF like IAU in taxable - of course if you have that you may be stuck with it now...
era
Junior Member
Junior Member
Posts: 12
Joined: Sun Nov 10, 2019 12:39 pm

Re: IAU Taxes w/Fidelity and TurboTax

Post by era » Sat Jan 11, 2020 10:24 am

sophie wrote:
Sat Jan 11, 2020 9:53 am
Honestly, these kinds of tax headaches are exactly why I got rid of my taxable gold ETFs a long time ago in favor of physical or Perth Mint gold. However this thread raises an interesting question: any storage, insurance etc charges need to be tracked as it's part of your cost basis in the investment! Also, not sure exactly how to handle cost basis if I were to sell and withdraw from my Perth Mint account. I expect I'd have a lot of leeway since they obviously don't have to report anything to the US IRS.

If you do want to own taxable gold in ETF form, definitely go with a gold trust like PHYS. You have to file a form every year (whether you sell or not), but when you do end up selling you will pay capital gains rates and not collectibles rate. Last I checked, the form cannot be filed electronically, thus your federal and probably also state tax returns must be filed in paper form. I would never for a second consider a standard gold ETF like IAU in taxable - of course if you have that you may be stuck with it now...
Sophie,

I do not have it yet, I am currently considering all of the options. I am also looking looking at IAUF. https://www.ishares.com/us/products/293782/ It appears to be taxed the same as a regular equity ETF (still trying to figure it out). It is even more "paper" gold than IAU, which I understand carries its own risks. But, on the plus side, if it is taxed as a regular ETF, the capital gains would get the regular treatment and not the commodity rates.
User avatar
pugchief
Executive Member
Executive Member
Posts: 3846
Joined: Tue Jun 26, 2012 2:41 pm
Location: suburbs of Chicago, IL

Re: IAU Taxes w/Fidelity and TurboTax

Post by pugchief » Sat Jan 11, 2020 1:55 pm

sophie wrote:
Sat Jan 11, 2020 9:53 am
Honestly, these kinds of tax headaches are exactly why I got rid of my taxable gold ETFs a long time ago in favor of physical or Perth Mint gold. However this thread raises an interesting question: any storage, insurance etc charges need to be tracked as it's part of your cost basis in the investment! Also, not sure exactly how to handle cost basis if I were to sell and withdraw from my Perth Mint account. I expect I'd have a lot of leeway since they obviously don't have to report anything to the US IRS.

If you do want to own taxable gold in ETF form, definitely go with a gold trust like PHYS. You have to file a form every year (whether you sell or not), but when you do end up selling you will pay capital gains rates and not collectibles rate. Last I checked, the form cannot be filed electronically, thus your federal and probably also state tax returns must be filed in paper form. I would never for a second consider a standard gold ETF like IAU in taxable - of course if you have that you may be stuck with it now...
I disagree. I'm pretty sure the brokerages are tracking adjusted cost basis, so you don't have to. Also, I'm with Technovelist: not sure I trust Sprott, and the ER is way higher.
User avatar
Tyler
Executive Member
Executive Member
Posts: 1943
Joined: Sat Nov 12, 2011 3:23 pm
Contact:

Re: IAU Taxes w/Fidelity and TurboTax

Post by Tyler » Sat Jan 11, 2020 5:03 pm

era wrote:
Sat Jan 11, 2020 9:23 am

Tyler - does what they discussed in this thread match your experience? Specifically, form 8949:

https://ttlc.intuit.com/community/inves ... /00/276121
Yes. Turbotax fills out form 8949 automatically.
Mechanical engineer, history buff, treasure manager... totally not Ben Gates
Post Reply