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- Mar 15, 2011
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My broker is reporting the following items on my 2010 Form 1099-B for the SPDR GOLD TR GOLD Shares (symbol is GLD) as follows:
Descript: SPDR GOLD TR Quan: 0.00 Event: PRINCIPAL Date:11/05/10 Amt: 6.70
Descript: SPDR GOLD TR Quan: 0.00 Event: PRINCIPAL Date:12/03/10 Amt: 6.61
Also, on my 2010 Supplemental Information Form under Additional Information (info not reported to IRS that may assist in tax return preparation) the Broker is supplying the following information:
Proceeds Investment Expenses: -13.31 (-6.70 plus -6.61)
I did not receive any payment for the amounts reported on my 1099 re the GLD Principal in 2010 and I did not sell any of my GLD shares during 2010.
It is my understanding that the SPDR Gold Trust (GLD) is considered a "non-mortgage widely held fixed investment trust" and that the Trust sells only a de minimis amount of gold for payment of Trust expenses and made no distributions of sales proceeds to shareholders.
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 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.
What is my cost basis for Schedule D purposes? Should the cost basis be my prorated amount of the expenses which in essence equals the amount of the Principal being reported by the broker? Or should the cost basis be zero and my share of prorated expenses flow through on another tax form?
Thank you.
Descript: SPDR GOLD TR Quan: 0.00 Event: PRINCIPAL Date:11/05/10 Amt: 6.70
Descript: SPDR GOLD TR Quan: 0.00 Event: PRINCIPAL Date:12/03/10 Amt: 6.61
Also, on my 2010 Supplemental Information Form under Additional Information (info not reported to IRS that may assist in tax return preparation) the Broker is supplying the following information:
Proceeds Investment Expenses: -13.31 (-6.70 plus -6.61)
I did not receive any payment for the amounts reported on my 1099 re the GLD Principal in 2010 and I did not sell any of my GLD shares during 2010.
It is my understanding that the SPDR Gold Trust (GLD) is considered a "non-mortgage widely held fixed investment trust" and that the Trust sells only a de minimis amount of gold for payment of Trust expenses and made no distributions of sales proceeds to shareholders.
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 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.
What is my cost basis for Schedule D purposes? Should the cost basis be my prorated amount of the expenses which in essence equals the amount of the Principal being reported by the broker? Or should the cost basis be zero and my share of prorated expenses flow through on another tax form?
Thank you.