GLD to coins = loss?

[PP67]

The GLD ETF I bought in January in my taxable account is still down about 3.7% as of this morning...

If I sold those shares for a loss before the end of the year, could I then use the money to buy gold coins and get a tax write-off for the loss or is that considered a "like-kind" exchange?

[MachineGhost]

The GLD ETF I bought in January in my taxable account is still down about 3.7% as of this morning...

If I sold those shares for a loss before the end of the year, could I then use the money to buy gold coins and get a tax write-off for the loss or is that considered a "like-kind" exchange?

If its not within 30 days per the wash sale rule you should be safe.

[craigr]

Just wait 31 days. That way there is no question about it. That's what I generally do for tax loss harvesting if it presents itself. The rules are so clear that there is no debating it at that point.

[PP67]

Thanks for all your comments... Just to complicate things, some of the GLD I bought on 1/4/2012 that now shows a profit and some on 1/30/2012 that now shows a loss...  Combined they show just a slight loss.  If I sell just some of the total shares, do I just use an average cost basis to compute the loss?

[craigr]

Thanks for all your comments... Just to complicate things, some of the GLD I bought on 1/4/2012 that now shows a profit and some on 1/30/2012 that now shows a loss...  Combined they show just a slight loss.  If I sell just some of the total shares, do I just use an average cost basis to compute the loss?

Personally, unless that tax loss is approaching -10% or so in an asset, I leave it alone. It's usually not worth the hassle (as you are finding out) and the price may just recover during all the in/out gyrations and you could miss a gain.

BUT, talk to someone who knows your tax situation before doing anything that could result in a tax bill, please...