Tuesday, November 24, 2009

Re: [TheOptionClub.com] Commodity ETF's and taxes

 

GDX  is an example of an etf that would be taxed as a stock and not as a comodity, and as a mining co. is leveraged to the price of gold

--- On Mon, 11/23/09, drrobhansen <robhansen5252@hotmail.com> wrote:

From: drrobhansen <robhansen5252@hotmail.com>
Subject: [TheOptionClub.com] Commodity ETF's and taxes
To: OptionClub@yahoogroups.com
Date: Monday, November 23, 2009, 11:37 PM

 
Interesting article here about how profits and losses are treated differently when trading or investing in certain ETF's. The ones mentioned are USO, UNG, DBA, GLD, SLV, IAU. It turns out that these are not treated as regular stock investments, but somehow taxed as collectables. In case the link doesn't work, the article is located at the Options Zone website and the article is intitled, "Guess What Uncle Sam Has Planned for Your Gold Investments. " This may be a bit off topic, but perhaps some of you are writing calls against long term ETF holdings in taxable accounts.

http://www.optionsz one.com/market- commentary/ sector-reviews/ 2009/11/taxes- on-gold-investme nts.html? sid=SY2551& en=129451

BTW, thanks to all who responded to my question regarding calendar spreads. I do believe that the potential volatility of lower cost stocks will hurt the performance of calendar spreads more than those that are higher priced. It also seems that you have more flexability with option adjustments with the higher priced stocks.

RFH

__._,_.___
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
.

__,_._,___
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)