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Has anyone else had an issue with that? I'm in an investment club and we own GLD. We are having trouble tying out the proceeds amount, by exactly the amount of "expense proceeds" that are reported on the 1099-B. It's only $2, but what a pain.

We had a discussion about this last February. Bottom line, investment clubs certainly do not want to own GLD or SLV or any other ETF that is classified as a widely held fixed investment trust (WHFIT).

Each month you have to enter a sale of a fractional ounce of gold. Note: this is NOT a fractional share of GLD. You have to calculate how much of your cost basis to assign to this fractional share. This generates a capital gain or loss. The amount of sales proceeds is then entered as a deductible expense.

If this isn't complicated enough, the capital gains generated are subject to the CG rates for collectibles, 28% maximum.

Ira
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