20.10.2014 - How New Commodity ETFs Really Work
BlackRock Launches the First ETF to Provide Long-Only Broad Exposure to Commodities in a ’40 Act Regulated Structure. After all, the biggest hassle for most investors looking to get exposure to commodities is that you get a “K-1 Partnership Income” form at the end of the year. That means your gains are taxed as if you personally were buying and selling futures. Specifically, you pay a 60 percent/40 percent blended capital gains rate, and your gains get marked to market at the end of the year. In other words, on an up year, you can pay taxes despite having received no income, and not having sold. That’s a pain, to be blunt. So hey, this new fund is great. Someone solved the K-1 problem...............................................Full Article: Source
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