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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (31815)	10/26/2004 7:17:36 PM
From: Taikun	Read Replies (1) \| Respond to of 39344

DAK, Gold ETFs, trusts, paper gold, mutual funds with gold seem, in theory, to be all subject to the IRS max 28% long term CG rate. (The max rate for other types of property is 15%) As for reportability, sales in excess of 1oz of anything other than Eagles, Maple Leafs and Krugerrands must be reported. Ditto sales over $10k of anything. Since paper gold, ETFs are classified the same as physical I wouldn't be surprised to see the reporting rules applied to gold ETF sales also. Here's what Steve Poser's StreetAuthority said about the gold ETF (I assume this applies to the CEF also): There is also an enormous tax consequence in the gold fund as it is currently proposed. Gold is considered a collectible by the Internal Revenue Service (IRS) in the United States. What does that mean? It means that if you think you are going to garner long-term capital gains treatment if you hold your gold shares long enough, then you are sadly mistaken. You could hold these shares until the moon turns to blue cheese, and you'd still have to pay at a 28% tax rate rather than the long-term preferred rate of 16%. streetauthority.com What they're saying is they don't mind if you own gold, but if you do... David