Quote:
Originally Posted by DaveZ
As I understand it, gold ETF’s like IAU also incur the 28% capital gains hit on profit taken on sale. News articles out there about many retirees buying gold ETF’s without realizing this.
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Correct. Here is why the IRS treats gold ETFs as a collectible:
"Gold ETFs that hold physical gold are treated as collectibles for tax purposes by the IRS because they are considered to represent direct ownership of the underlying metal. This classification leads to a higher long-term capital gains tax rate of 28%, compared to the 15% or 20% rate that typically applies to other assets."