News•May 6, 2026
GLD Tax Treatment: Wash Sales, §475 MTM, and GLD Options (Section 1256 Vs. Section 1234)
The SPDR Gold Trust (GLD) is a grantor‑trust ETF whose tax treatment hinges on its legal structure. For most investors, GLD is viewed as property, so wash‑sale rules under §1091 generally do not apply. Traders who elect §475 mark‑to‑market can treat GLD shares as securities, bringing them into ordinary‑income MTM accounting. GLD options are contested: Green, Neuschwander & Manning recommend §1234 equity‑option treatment, while an alternative view classifies them as §1256 contracts with 60/40 capital gains.
