Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

bkb1956 or RobinDIn my fidelity brokerage account, I have

bkb1956 or RobinD In my fidelity...
bkb1956 or RobinD
In my fidelity brokerage account, I have silver etf slv. I sell covered call and puts on etf throughout the year. If I purchased etf for $2200 in beginning of 2013. I sell 1 covered call every 3-4 months in the year which expire worthless. I received $200 in premium by selling these covered calls. Value of my silver etf at end of 2013 becomes $1900 and I am still holding it.
Will $200 be considered income for year 2013 as gold and silver are collectible ?

As total value of my security and received premium in 2013 end is $2100 ($1900 + $200) which is less than initial amount of $2200. I have 0 or -$100 collectible gain in year 2013.
Show More
Show Less
Ask Your Own Finance Question
Answered in 16 minutes by:
7/13/2013
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 4,065
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
Verified

First, thank you for requesting me to assist you.

 

You are correct that the IRS treats gold, silver and other precious metals as "collectibles." However, they do not qualify for the 15% maximum tax rate on
long-term capital gains. Instead, gains on precious-metal ETFs that you've held
for more than one year are taxed at your ordinary income rate, up to a maximum
of 28%. If you hold the ETF for less than a year, gains will be taxed at income
rates up to 35%.

 

Please let me know if you require further information or clarification.

 

Thank you and best regards.

 

Barb

Ask Your Own Finance Question
Customer reply replied 4 years ago

In this example, if I buy silver etf in beginning of the year at $2200. I receive $200 within year 2003 by selling covered calls on it which expire worthless. At end of year 2013, value of silver etf reduces to $1900 and I still own it. Will I have taxable income of $200 in year 2013. or will my taxable income be 0 or -$100 because


total value of security and premium received = $1900 + $200 = $2100 < $2200

I apologize for only addressing one part of your question.

 

Based on the information you have given me, you have a loss of $100.00.

 

Thank you.

 

Barb

Ask Your Own Finance Question
Customer reply replied 4 years ago

Silver etf buying price in 2013 beginning = $2200


Premium received by selling covered calls = $200


Value of Silver etf at 2013 end = $1900.


As profit and loss of etf will be computed when it is sold. As silver etf is not sold at 2013 end but maintained. Will decrease of $300 be used in capital gain/loss calculation for tax purposes. or it will be only $200 gain in premium received.

I will opt out and let another expert assist you on this. Thank you.
Ask Your Own Finance Question
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 30,160
Experience: Personal Investment, Tax Preparation
Verified
Hi and welcome to Just Answer!
Generally - NO gain or loss is realized unless the asset is sold or otherwise disposed.
Thus if ETF shared are not sold in 2013 - neither gain nor loss is recognized. If ETF shared will be sold in 2014 - the gain or loss will be reported on 2014 tax return.

If you write a coverred call - premiums received is NOT included in income at the time payment is received, but income for tax purposes is recognized when your obligation to deliver the underlying stock expires or when you either sell the stock as a result of the call assignment or by closing the option position (buy-to-close).

Please see some additional details in this article - http://budgeting.thenest.com/taxation-covered-calls-24353.html
Let me know if you need any help.
Ask Your Own Finance Question
Customer reply replied 4 years ago

LEV

If at end of 2013, one sells etf on 31st december 2013 for $1900 and buys it immediately to avoid any lapse, can one use it to show that there is no capital gain in year 2013

 

If ETF shares are sold on 31st December 2013 - the gain or loss is recognized.
You will report the gain on your tax return.
However if you have a loss and immediately buy shares of the same ETF - that will be a wash sale - and the loss may not be deducted but will be added to the basis of shares you repurchase..
If you have a gain - that gain would be reported on 2013 tax return.
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 30,160
Experience: Personal Investment, Tax Preparation
Verified
Lev and 87 other Finance Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 30,160
30,160 Satisfied Customers
Experience: Personal Investment, Tax Preparation

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,919 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I had a question on moving an IRA account from a bank IRA to
I had a question on moving an IRA account from a bank IRA to a brokerage IRA. My uncle went to his local bank and let them know he wanted to move his account. They issued him a check but it's thebfina… read more
bkb1956
bkb1956
Finance Enthusiast
4,065 satisfied customers
We have a situation with an irrevocable trust. The bank is a
Hello.We have a situation with an irrevocable trust. The bank is a co-trustee and national.. The money has been in a money market account that has been FDIC insured. The bank is dissolving these and n… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
In a suburb 30 miles north of New York City what is the
In a suburb 30 miles north of New York City what is the going rate or reasonable rate for commercial office space annual lease increases? not including any TAX/CAM increases. I am negotiating a lease … read more
bkb1956
bkb1956
Finance Enthusiast
4,065 satisfied customers
I'm trying to fill out a W4 and i'm working on the 2
Hi, I'm trying to fill out a W4 and i'm working on the 2 earners/ multiple job section. my total withholding needed is $5050. It then says to divide that by the number of pay periods left in the year.… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Daniel Blade(Snr Financial Advisor for Trade Financial) has
Daniel Blade(Snr Financial Advisor for Trade Financial) has been talking to me Re: Shares etc in stock market and cryptocurrencies. Is he in the SCAM business or is he legit? … read more
abci168
abci168
Principal
27 satisfied customers
My mother moved into my house 7 months ago. She's 85 years
My mother moved into my house 7 months ago. She's 85 years old and gets $614 in Social Security each month.My mother will not give me any money because my sister needs the money to pay for a long term… read more
Lev
Lev
Tax Preparer
30,160 satisfied customers
I have revenue of more than 300K in my c corp, I have less
I have revenue of more than 300K in my c corp, I have less than 50K in expenses, how can i save taxes or avoid paying taxes on the remaining 250K, will buying assets reduce my revenue footprint… read more
Lev
Lev
Tax Preparer
30,160 satisfied customers
I was wondering if I could talk to a CPA online? I need to
I was wondering if I could talk to a CPA online? JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: I need to conduct an interview with a CPA JA: Is ther… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,226 satisfied customers
I own a Partnership Business with my brother in law and in
I own a Partnership Business with my brother in law and in August he Wanted out. We wrote up a contract agreeing to remove his name from the business and agreed to continue to pay on his personal cred… read more
Lev
Lev
Tax Preparer
30,160 satisfied customers
Husband and wife submitted a joint tax return. However
This question is for Lev. Husband and wife submitted a joint tax return. However husband in a year prior to his death opened an art business with him as a painter. Thus, he attached schedule C to the … read more
Lev
Lev
Tax Preparer
30,160 satisfied customers
I have done quickbooks for years. We are trying to go into a
I have done quickbooks for years. We are trying to go into a new partnership and we do oilfield work. The job we do is billed at a daily rate of about 5800.00 per day. The new partners want to know wh… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
A person was an artist fro 10 years and over those years he
A person was an artist fro 10 years and over those years he painted a large number of paintings. One year prior to his death he decided to be a professional artist. He filed a Schedule C for that year… read more
Lev
Lev
Tax Preparer
30,160 satisfied customers
I recently got divorced. As part of the divorce decree I was
I recently got divorced. As part of the divorce decree I was to make a one time payment of 10k to my wife that was to represent her equity in the house. I was unable to do a cash out refi because we d… read more
abci168
abci168
Principal
27 satisfied customers
If I have to issue a 1099 to someone that will apply for
If I have to issue a 1099 to someone that will apply for ITIN number, can I issue the 1099 with no social security or ITIN number?… read more
socrateaser
socrateaser
1,031 satisfied customers
I own a company with the stock symbol AGNC. I am looking for
I own a company with the stock symbol AGNC. I am looking for advice on whether or not this stock has a high probability of bankruptcy. I've owned it for over 6 years and currently have a paper loss. I… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
What would the best life insurance policy be and my partner
What would the best life insurance policy be it's me and my partner his earning potential ya about 150k per year mine is about 40k . We are both in our late 30s with little savings. We still rent and … read more
bkb1956
bkb1956
Finance Enthusiast
4,065 satisfied customers
I am 70 years old taking care of my mother who is 88. I have
My name is***** am 70 years old taking care of my mother who is 88. I have a mortgage of 50,000.00. I live in a very rural town of 320 residents. My mother and I probably will not live long enough to … read more
Curtis Mathews
Curtis Mathews
President
MBA
0 satisfied customers
I want to know how the Tax Reform Bill will affect the way
I want to know how the Tax Reform Bill will affect the way gambling winnings are dealt with. Now, you can write off your losses up to your winnings. I was told that the tax reform does away with that.… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x