2025 tax reporting for GLD ETF options

Forum|Forum|1 year ago
March 4, 2025
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Schwab’s 1099B reports my 2 call options on GLD as to be reported on Form 6781 - Gains and Losses from 1256 Contracts and Straddles. These are not technically “straddles” but treated as collectibles I believe. On top of form 6781, there are 4 check boxes to choose from.

A - Mixed straddle election

B- Straddle by straddle identification election

C- Mixed straddle account election

D- Net Section 1256 contracts loss election

I chose B but not sure it is right. Both options were profitable so D is not appropriate. I also do not see how TT treated the taxes on the gains. TT listed the 2 options on Section B - Gains from Straddles.

Best answer by DavidD66

Your GLD options are definitely not straddles. The ETF GLD, which are structured as a grantor trusts, are treated as collectibles; however, the options are considered non-equity options and therefore treated as Section 1256 contracts. You do not have to select any of the elections at the top of Form 6781. In fact, If your only Section 1256 Contracts are GLD options, you should not select any of them. Your gains or losses will be reported on lines 4c (short term) and 11d (long term) of Schedule D.

I recommend you review the instructions that are part of Form 6781 - Gains and Losses From Section 1256 Contracts and Straddles