topic GLD options - 8949 or 6781? in Get your taxes done using TurboTax

GLD options - 8949 or 6781?

sam992116 — Sun, 08 Feb 2026 04:09:57 GMT

GLD etf itself is treated as collectable but my understanding is GLD options are treated at 1256 Contracts.

But my broker listed GLD options trades under short term trades to be reported on 8949. Not sure why would they do it?

What is correct option 8949 or form 6781 (1256 contracts)?

How do remove GLD options within turbotax CD version? Just delete those trades after opening trade details and add net proceeds (either profit or loss) to other 1256 contacts?

Would I get any notice or filing error as net numbers on short term trades will change?

Re: GLD options - 8949 or 6781?

Mike9241 — Sun, 08 Feb 2026 08:12:30 GMT

there are differing interpretations as to whether they're 1256 contracts

see this TurboTax expert response

https://ttlc.intuit.com/community/taxes/discussion/2025-tax-reporting-for-gld-etf-options/00/3538830

and here'ss a different viewpoint (older than above)

The IRS hasn’t clearly stated the tax treatment of sales of options based on ETFs. Writer's position is that options on securities ETFs that are organized as RICs are treated as securities and options on commodities ETFs structured as PTP are Section 1256 contracts. Tax treatment of options on precious metals ETFs is unclear; some tax professionals make a case for Section 1256 treatment as a non-equity option.

That's the issue, the IRS has not clarified whether these options are or are not 1256 contracts. Some brokers report them as 1256 contracts, while others, like yours, do not.

and here's another negative, even older

https://www.cxoadvisory.com/equity-options/are-etf-options-section-1256-contracts/

You can ask your broker if it will change the reporting. If not, your options are to accept that reporting or report as 1256 by zeroing out gain/loss on the 8949 (you have to keep it there because of the broker's reporting to the IRS) and enter on 6781. see instructions for Form 8949, probably type T.

if you go the 1256 route, you may want to disclose that you're taking a position contrary to the 1099-B reporting. This might protect you from certain penalties if the IRS were to conclude that they are not 1256 contracts.

Re: GLD options - 8949 or 6781?

sam992116 — Sun, 08 Feb 2026 17:46:55 GMT

Thanks @Mike9241

Couple of questions

When you say I can Zero out GLD gain or loss in 8949D, how do I do it? should I match proceed amount same as cost basis for each transaction so net is Zero? T will go into which box of 8949D?

Last thing you mentioned that I need to disclose that I am moving GLD options from 8949 to 6781 as 1256 contract, how do I do it within Turbo tax as turbo tax CD version does not allow any attachment or explanation sheets? Not sure if same is the case with Turbo Tax online version?

Re: GLD options - 8949 or 6781?

Mike9241 — Sun, 08 Feb 2026 17:37:40 GMT

don't know if you are using online or desktop because each requires a separate approach.

With desktop, you can go into forms mode. Go to the 8949 where the trades are reported and enter O (the letter) in the adjustment code column for each of those trades. Then in the adjustment amount column you'll need to enter either a positive or negative amount to zero out the reported gain or loss. I cannot provide guidance for online versions.

Re: GLD options - 8949 or 6781?

sam992116 — Tue, 10 Feb 2026 15:13:09 GMT

Thanks