I received a 1099-B for the sale of a gold fund (GLD). How do I reflect in TurboTax that this 1099-B is for the sale of a collectible, which I understand is taxed at a higher rate?
When you enter the Form 1099-B in the Investment Income section of TurboTax, choose Stocks, Cryptocurrency, Bonds, etc... and you will be asked if the sale includes other types of investments, such as land, collectibles and other items. When you go to enter the Form 1099-R, you will choose "Collectible" for the type of investment sold. On that same screen you will be asked about the reporting of the sale as long-term covered and the such.
The Gold EFT (GLD) is not a collectible. When you own GLD you own a precious metal commodity fund. it is an investment, not a collectible.
Thanks for the quick response. Per the "SPDR® GOLD TRUST 2023 Grantor Trust Tax Reporting Statement", GLD is a considered a "collectible" taxed at maximum federal rate of 28% versus 20% for other LT gains. See the following:
"The Trust holds only gold bullion and, accordingly, received no income during the year. Under current law, gains recognized by individuals from the sale of 'collectibles,' including gold bullion, held for more than one year are taxed at a maximum U.S. federal income tax rate of 28%, rather than the 20% rate applicable to most other long-term capital gains. For these purposes, gains recognized by an individual upon the sale of GLD shares held for more than one year, or attributable to the Trust's sale of any gold bullion which the Shareholder is treated (through its ownership of shares) as having held for more than one year generally will be taxed at a maximum U.S. federal income tax rate of 28%."
Given GLD is treated as a collectible, how do I reflect in TurboTax that a 1099-B received for the sale of GLD (long-term with basis reported to IRS) is for the sale of a collectible?
When you enter the Form 1099-B in the Investment Income section of TurboTax, choose Stocks, Cryptocurrency, Bonds, etc... and you will be asked if the sale includes other types of investments, such as land, collectibles and other items. When you go to enter the Form 1099-R, you will choose "Collectible" for the type of investment sold. On that same screen you will be asked about the reporting of the sale as long-term covered and the such.
"The Gold EFT (GLD) is not a collectible"
That is incorrect. Firstly, the 1099s I got from TD Ameritrade always identified as such.
Also, from the SPDR GLD tax information PDF for tax year 2023:
"Shareholders generally will be treated, for U.S. federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders also will be treated for U.S. federal income tax purposes as if they directly received their respective pro rata shares of the Trust’s income and proceeds, and directly incurred their pro rata share of the Trust’s expenses. Most state and local income tax authorities follow U.S. federal income tax rules in this regard. However, Shareholders should contact their own tax advisors as to the state and local tax consequences of ownership of GLD shares. The Trust holds only gold bullion and, accordingly, received no income during the year. Under current law, gains recognized by individuals from the sale of "collectibles," including gold bullion, held for more than one year are taxed at a maximum U.S. federal income tax rate of 28%, rather than the 20% rate applicable to most other long-term capital gains. For these purposes, gains recognized by an individual upon the sale of GLD shares held for more than one year, or attributable to the Trust's sale of any gold bullion which the Shareholder is treated (through its ownership of shares) as having held for more than one year generally will be taxed at a maximum U.S. federal income tax rate of 28%. The U.S. federal income tax rates for capital gains recognized upon the sale of assets held by an individual U.S. shareholder for one year or less are generally the same as those at which ordinary income is taxed."
For me (TurboTax 2024, 3/22/2025) the process is different.
Under Investments, I choose "Stocks, Bonds, Mutual Funds." I don't see an option to choose "Stocks, Cryptocurrency, Bonds." In the questionnaire about my 1099-B, I answer "Yes" to "Do these sales include any other types of investments? This includes land, collectibles, and other items." But I don't have an option to choose "Collectibles." I only have three options for short-term gains (covered, non-covered, and no 1099-B) and three options for long-term gains (covered, non-covered, and no 1099-B). Then I click "I need to adjust my total cost basis" and select "C" for collectible. I left the adjustment amount empty.
Does this sound correct?
This feels right. To be sure, I suggest you go to Forms, look up the form (8949) and see if the info there looks right. For mine (SPDR GLD) the codes in column f were BC (B meaning the basis was incorrect, as my broker didn't provide one) and C (collectible). The IRS 8949 instructions indicate that for code C in column f that the adjustment amount (column g) should be entered as -0- (not blank).
JRJ
You will report as the sale of a collectible in the same section that you would report the sale of a stock. While working in your return: