1. Gold ETF cover costs by selling a small amount every month for each lot I own. So in the 1099B I received, there are dozens of small amount of this kind of sales for this Gold ETF. The 1099B lists proceeds and cost basis for these small transactions. So I need to pay tax for the gains. There is also a table showed Proceeds Investment Expenses for each month for this Gold ETF, which was not reported to IRS. The amount of these expenses equals the proceeds of the Gold ETF each month. So I didn't receive the proceeds, and all proceeds were used to pay these investment expenses, but I still need to pay tax for the proceeds. How should I report these investment expenses in my tax return to adjust the tax for the proceeds?
for federal purposes, investment expenses that are not deductible. they may be deductible for state income tax purposes. you would enter them of federal schedule A and the amount would carry to the state return if deductiible
2. I didn't report these proceeds investment expenses for the Gold ETF in my tax returns for all the past years. If I sell this Gold ETF in 2024, can I adjust cost basis or deduct sales expense somewhere so that I can get these investment expenses in the past years reported?
No, those expenses have no effect on your basis. the fund will provide a 1099-B with the proper tax basis.
example say you sell 1 share for $5 which has a tax basis of $4 and that $5 is used to pay expenses. the broker should be reporting a $1 gain and $5 as investment expense for which you get no federal tax benefit.
this is an issue with many ETFs
3. BTW, there is an "Account Fees" also list in the supplemental information for 1099B my broker provided for another stock which also not reported to IRS, how should I report this fee in my tax
that too is not is an investment expense not deductible for federal tax purposes but maybe for state
the only good news, if you itemize, is that the tax law making them nondeductible expires for 2026 unless the law is renewed.
