From a blog re commodity ETFs:
I brought up GLD earlier and omitted the tax implications intentionally to make a point. While GLD is the natural play on gold, note that you'll potentially pay a much higher tax rate upon sale than you would if you owned the Gold Miners ETF GDX. Gains recognized by individuals from the sale of ‘collectibles,’ including physical commodity ETFs, held for more than one year are taxed at a maximum federal income tax rate of 28%, rather than the 15% rate applicable to most other long-term capital gains.>> http://seekingalpha.com/article/182485-just-how-well-do-you-know-your-etf
This probably belongs on another board, but is likely of interest to many here as well....
I know the statement above is accurate re taxing of LTCG in gold or GLD. However, I have never heard that claimed for commodities or commodity ETFs in general... as the author of the above seems to claim.
Does anyone here know if that's the case...?
Actually, does anyone here know exactly what the IRS defines as the "collectibles" that are taxed at the maximum 28% LTCG rate...? The 1040 instructions which I just received calls out: "...works of art, rugs, antiques, metals (such as gold, silver and platinum bullion), gems stamps, coins, alcholic beverages, and certain other tangible property."
Obviously, definitions like "such as" could leave a lot to the IRS imagination....!
With my interest in classic Mustangs, I've always wondered if a cap gain in selling one would be taxable, at the 28% rate or otherwise, (but never had the luck to HAVE such a gain..!)