Gyroscopic Investing

A person with a gold storage company recommended to me that I consider a 1031 exchange from my holdings in the etf GLD, into bullion. (I had asked about some way to get gold from GLD to bullion. I was looking for some sort of direct transfer via GLD's hired gold clearing banks. )

A search here finds that MachineGhost made a comment 6 years ago to the effect that such a 1031 is allowed.

A google search turns up a law firm offering same.
http://www.mclaughlinquinn.com/news-arc ... from-taxes

Bullion/Coins = ETF certificate. As long as the Exchange Traded Fund represents a fractional undivided interest in the underlying bullion, these may be exchanged in both directions of the same metal.

Sure, sure, makes sense on paper. Just thought I'd toss it out for discussion.

In the past six years since this was posted... has anyone done a Section 1031 exchange of ETF to bullion, or bullion to ETF?

I just heard a podcast about something related... the new Cambria TAX ETF where you can do a 351 exchange from one stock to ETF or Mutual Fund to the diverisifed TAX ETF... you don't fund it with cash. You don't get a current year taxable event.

That made me wonder... hmmm... is there something like that for gold? Then I found this thread.

I have physical, but someday when I'm old, I might not want it any longer. My kids might appreciate it all being in ETF form at a brokerage. Then they'd get the step-up in basis upon my death, they would not have to figure out where Dad kept it, where are the vault keys, how to sell it, etc.

Wouldn't they get the step-up regardless of whether it's physical or in a brokerage?

I believe step-up applies in both cases, but brokerage would be easier for the kids to manage - rebalancing for me and ultimately inheritance.

My understanding is after the Tax Cuts & Jobs Act (AKA the Trump Tax Cuts), the rules were tightened around 1031 exchanges to limit to only real estate. So no, I don't believe you can do this anymore.

I double checked with my wife, who is a CPA, and she confirmed we are SOL.

But I think there are still "in kind" distributions allowed. However I don't know of any EFT that will distribute gold to you. Unless you are a market maker for the fund.

At this point I'd love an exchange from GLD to GLDM. I should call them.