How to handle Gold ETF(IAU) in Turbotax?

[DaveF1006]

It depends. It could be because the money was placed into another account thus increasing the basis for that account. In this instance, the sale is a taxable event even if you didn't receive any proceeds from the sale. The details should be disclosed in a supplemental form that came with your 1099-B.  

If you can't find that information in a supplemental form, you might contact the broker for more specific details.

[osmiumlogic]

I have the exact same problem with my SGOL ETF investment.   No income shows up in my monthly brokerage statements.  But my 1099-DIV has monthly amounts.   Seeing this in the 1099-DIV:

"UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS"

Surely this problem has been solved by someone in previous years.   This can't be a new problem.  

[j-m-r2019]

Thank you. I spoke at length with Schwab, the broker. They said that these are principal payments from short term sales generated by the trust, not me. It generated cash for the trust. I didn't receive any of it. I was told that I need to contact a tax expert because they do not give out any tax advice so I'm trying here. Turbo tax won't work here because I have no cost basis. He also said that the sale actually reduces the cost basis in the fund which of course increases my capital gain when I sell. This is not something I've ever had with this ETF in the 6 years we've owned it. I don't know how to deal with it. There is no separate 1099 B just for this, it came in a Composite 1099... it has dates sold for each month of 2024 with no dates acquired.

SHORT-TERM TRANSACTIONS FOR WHICH BASIS IS MISSING AND NOT REPORTED TO THE IRS - Report on Form 8949, in either Part I with Box B checked or Part II with Box E checked, as appropriate.

1a-Description of property

(Example 100 sh. XYZ Co.)

CUSIP Number / Symbol **

1b-Date

acquired/

1c-Date

sold or

disposed

1d-Proceeds

6-Reported to IRS:

Gross Proceeds

(except where indicated)

[osmiumlogic]

I found the solution on another TurboTax Q&A thread.   I also noticed when I inspected my 1099-DIV from my brokerage that at the end it also listed each of the monthly amounts as expenses.  This confirmed the solution from the other thread which is to set the purchase cost equal to each monthly “distribution”.   Thus it’s a wash sale.  No money was actually received.   So everything cancels out.

[j-m-r2019]

osmiumlogic

 Thank you for that. In my case, I have none of this on the 1099 DIV, just on the1099 B which has date acquired and cost basis (blank). Sounds like you're saying that I could manually put the cost basis as the same as the "distribution".  Sounds very smart and I'm hoping that this can work. Just so I don't make any mistake here, you're saying that the same concept that applied to your 1099 DIV can apply to my 1099B, right?

[osmiumlogic]

Yes.  Assuming no money was actually received by you each month which was my situation.

[j-m-r2019]

I can't thank you enough...I've been stewing about this for days now. Great community here.

[osmiumlogic]

I couldn’t find the Q&A thread I looked at previously.   But here’s a link to another thread on this topic for your reference.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/ishares-gold-undeterm...

[j-m-r2019]

this is perfect..I'm done and I filed saving $800 because it was a wash. What a crazy thing, nobody tells you anything at the ETF, or the broker but our TT community has each other's back I think. Thank you!!