Page 1 of 1
My Tax Forms and GLDM
Posted: Fri Feb 18, 2022 1:59 pm
by Don
I own GLDM and just received my tax forms for 2021. Under "Proceeds from Broker and Barter Exchange Transactions" GLDM is giving off some kind of "Undetermined Term Transactions for Noncovered Tax Lots." They are listed as "Principal payments." I'm guessing that I have to declare these as income but I've never seen this before. I also own IAU and they don't seem to spin off these transactions.
What the hell is this?
Re: My Tax Forms and GLDM
Posted: Fri Feb 18, 2022 2:16 pm
by yankees60
Don wrote: ↑Fri Feb 18, 2022 1:59 pm
I own GLDM and just received my tax forms for 2021. Under "Proceeds from Broker and Barter Exchange Transactions" GLDM is giving off some kind of "Undetermined Term Transactions for Noncovered Tax Lots." They are listed as "Principal payments." I'm guessing that I have to declare these as income but I've never seen this before. I also own IAU and they don't seem to spin off these transactions.
What the hell is this?
A Bing search found this:
https://www.irs.gov/pub/irs-pdf/i1099b.pdf
"Noncovered" is used 17 times in these instructions.
Re: My Tax Forms and GLDM
Posted: Fri Feb 18, 2022 5:45 pm
by I Shrugged
MangoMan wrote: ↑Fri Feb 18, 2022 2:25 pm
IAU does it, too.
The fund expenses are paid by selling off small amounts. These amounts create a taxable event but increase your cost basis.
Pain in the butt nonsense, but unavoidable with ETFs.
I don’t think it has ever increased my cost basis. There are two tax entries. One for capital gains if any. Second for expenses related to investment.
Re: My Tax Forms and GLDM
Posted: Fri Feb 18, 2022 8:55 pm
by Don
Yeah, my IAU is in a retirement account. That's why I hadn't noticed it before. And my PHYS is PHYS so this doesn't apply.
Re: My Tax Forms and GLDM
Posted: Sat Feb 19, 2022 10:36 am
by I Shrugged
MangoMan wrote: ↑Fri Feb 18, 2022 6:49 pm
I Shrugged wrote: ↑Fri Feb 18, 2022 5:45 pm
MangoMan wrote: ↑Fri Feb 18, 2022 2:25 pm
IAU does it, too.
The fund expenses are paid by selling off small amounts. These amounts create a taxable event but increase your cost basis.
Pain in the butt nonsense, but unavoidable with ETFs.
I don’t think it has ever increased my cost basis. There are two tax entries. One for capital gains if any. Second for expenses related to investment.
https://www.tradelogsoftware.com/resour ... metal-etfs
Check with your tax guy.
Yeah, thanks. I've been doing with with my CPA since 08-ish. I do the worksheet according to the GLD year end statement and instructions, and the CPA does it too. There has never been a change in basis for the remaining gold. Maybe some other funds do it differently. I haven't looked at 2021 yet so maybe GLD has done something different this year.