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<p>[QUOTE=&quot;doug444, post: 1845318, member: 38849&quot;]This is an excerpt from <a href="http://www.coinweek.com" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.coinweek.com" rel="nofollow">www.coinweek.com</a></p><p>See:&nbsp; <b><a href="http://tinyurl.com/pvrqr2a" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://tinyurl.com/pvrqr2a" rel="nofollow">http://tinyurl.com/pvrqr2a</a>&nbsp; [April 2012, maybe different rules now]</b></p><p><br /></p><p>Sure lots of unfavorable and complicated tax regulations I didn&#039;t know anything about until today.&nbsp; There&#039;s much more grief for taxpayers, this is just a brief intro:</p><p><br /></p><p>&quot;...Most precious metals ETFs, like other commodity ETFs, are not organized as corporations.&nbsp; Instead, most are master limited partnerships.&nbsp; Since precious metals ETFs periodically liquidate holdings to cover operating expenses, some as frequently as every three months, there will be taxable gains and losses to put on tax returns for each year of ownership.</p><p><br /></p><p>Further, the ETFs that hold futures contracts are required to value such holdings at market value as of the end of the year.&nbsp; What this means is that shareholders of these ETFs will have to pay taxes on the rise in metals’ prices as if their holdings were sold on December 31, even though the shareholder did not sell any shares that day.&nbsp; Therefore, in rising markets, investors in a commodity ETF that holds futures contracts would have to report taxable gains or losses each year instead of waiting until they actually sell their shares in an ETF.</p><p><br /></p><p>Adding to the complexity is that the gains or losses from commodity ETFs are considered 60% long-term and 40% short-term for tax reporting purposes.&nbsp; The actual length of time that the investor held shares in the ETF makes no difference!</p><p><br /></p><p>By being classified as short- or long-term gains and losses, there is the possibility that investors may not be able to deduct all of a loss in the same year that it occurred...&quot;&nbsp; [more][/QUOTE]</p><p><br /></p>

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