Exchanging GLD for Physical and 10K Threshold

[buddtholomew]

Posted the below question on BH but didn't want the thread to deteriorate after mentioning the investment in question. 10K? What's the consensus on reporting, etc.

I would like to TLH one of the two below purchases only for 2015. There are no capital gains to offset so only interested in reducing income by 3K limit and investing in physical gold. Carryover losses to date are approximately 1.7K. How do I go about evaluating which lot to sell - the higher or lower cost basis? I am leaning toward lower cost basis as I may have taxable gains to pay sooner rather than later.

Date Acquired Shares Cost Basis Cost Market Value Net Loss
12/31/2012 64.0000 $162.18 $10,379.47 $7,031.04  – $3,348.43
08/19/2013 65.0000 $132.02 $8,581.15 $7,140.90  – $1,440.25

[MachineGhost]

HIFO - Highest-In-First-Out

[buddtholomew]

HIFO - Highest-In-First-Out

I see a benefit to selling lowest cost basis under the following scenario:

If gold rises, I can continue to TLH shares at 162. The shares at 132 could achieve gains sooner. My objective is to slowly transition from GLD to some physical over time.

[MachineGhost]

I see a benefit to selling lowest cost basis under the following scenario:

If gold rises, I can continue to TLH shares at 162. The shares at 132 could achieve gains sooner. My objective is to slowly transition from GLD to some physical over time.

What if gold doesn't rise?

But since you're converting not taking losses per se, maybe LIFO does make more sense.  Carrying around that big loss while you have physical gold at a lower level would act as a cushion against gains and you could sell it later to offset the physical gold capital gains or just continue to hold it and hope it goes back above breakeven.

Heck, why bother selling at all, really?  Can you just add a new position at a lower price?