SPDR
Gold Trust
2007 Grantor Trust Tax Reporting Statement
EIN: 816124035
The following information is being provided to assist Shareholders of the SPDR Gold Trust with reporting of their taxable income, expenses, gain or loss for the calendar year 2007.
The example provided herein is based on a US individual Shareholder who purchased its SPDR Gold Trust Shares for cash. All Shareholders should contact their own tax advisors as to the tax consequences of the information reported in SPDR Gold Trust Data below.
Taxation of the Trust
The SPDR Gold Trust is classified as a grantor trust, for US federal income tax purposes. As a result, the Trust itself will not be subject to US federal income tax. Instead, the Trust's income and expenses will “flow through” to the Shareholders.
Taxation of US individual shareholders
Shareholders generally will be treated, for US federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of the Trust's income and proceeds, and directly incurred their pro rata share of the Trust's expenses. In the case of a Shareholder that purchases Shares for cash, its initial tax basis in its pro rata shares of the assets held in the Trust at the time it acquires its Shares will be equal to its cost of acquiring the Shares. Most state and local tax authorities follow US Income tax rules in this regard. However, Shareholders should contact their own tax advisors as to the state and local tax consequences of the information reported in SPDR Gold Trust Data.
TABLE: SPDR Gold Trust Data
The table below is an extract from the full table - to see
the full table for the year 2007 please download the pdf
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(29kb)
| Date | Gold Ounces per Share |
Per Share Gold Ounces Sold To Cover Expenses |
Expenses Per Share | Proceeds Per Share | |
|---|---|---|---|---|---|
| 01/03/2007 | 0.09919758 | 0 | 0 | 0 | |
| 01/04/2007 | 0.09919758 | 0 | 0 | 0 | |
| 01/05/2007 | 0.09919758 | 0 | 0 | 0 | |
| 01/08/2007 | 0.09919758 | 0.00003551 | 0.02164191 | 0.02164191 | |
| 01/09/2007 | 0.09919758 | 0 | 0 | 0 | |
| 01/10/2007 | 0.09923309 | 0 | 0 | 0 |
SPDR Gold Trust Data shows gold ounces acquired per SPDR Gold Trust (GLD) share purchased, gold sold (in ounces), proceeds, and expenses per SPDR Gold Trust (GLD ) Share.
Identify the date on which the Shareholder purchased its SPDR Gold Trust (GLD) shares in the column labelled “Date”. The amount in the column labeled “Gold Ounces per Share”, represents the pro rata amount of gold, in ounces, that each GLD Share represents.
Example: Shareholder XYZ purchases 200 GLD shares on 1/31/2007 at a price of $50 per share for a total purchase price of $10,000. Shareholder XYZ had no other purchases or sales of GLD shares during 2007.
Step 1: Identify the shareholder’s pro rata ownership of gold (in ounces).
Identify Shareholder XYZ’s purchase date of 1/31/2007. In the column labeled “Gold Ounces per Share”, identify the pro rata amount of gold (i.e. 0.09916214 ounces per share) each GLD share represents on that date.
For Shareholder XYZ, total prorated amount of gold ounces owned for its 1/31/2007 purchase is 19.832428 ounces (0.09916214 ozs per share multiplied by 200 shares purchased on 1/31/2007.) Note: This step should be completed for each date on which GLD shares were purchased.
Step 2: Calculate the gold (in ounces) sold from Shareholder XYZ’s account during 2007
The gold ounces sold per share during 2007 includes the cumulative amounts of all gold sales for the period which includes the day after the purchase date of 1/31/2007 through the day before sale date.
During 2007 the amount of gold sold after the 1/31/2007 purchase date is 0.00034463 oz per share for a total of 0.068926 oz (based on the purchase of 200 shares).
Step 3: Calculate cost of gold sold from Shareholder’s account
Total Gold ozs sold (Step 2) Gold ozs acquired (Step1) Cost of Gold sold $ 34.75
Step 4: Calculate Shareholder’s gain or loss on gold sales for each lot purchased
Identify all proceeds per share received by the Trust after Shareholder XYZ’s 1/31/2007 purchase date. During 2007, monthly sales for the period of 2/1/2007 through 12/29/2007 generated proceeds per share of $0.240834. Therefore, Shareholder XYZ’s gain or loss is determined as follows:
| Total Proceeds: $0.240834 per share X 200 shares= | $ 48.17 |
| Less: Total cost of gold sold (Step 3) | $ 34.75 |
| Total Reportable Gain (1040 Sch D, Part I) | $13.42 |
Step 5: Calculate Shareholder's investment
expenses
On Schedule B, identify all expenses per share paid by the Trust after Shareholder XYZ’s 1/31/2007 purchase date. During 2007, the expenses were paid monthly and for the period of 2/1/2007 through 12/30/2007 amounted to $0.240834 per share. Therefore, Shareholder XYZ’s investment expenses:
| Investment Expenses per Share | $0.240834 |
| Total Shares | X 200 |
| Total Investment Expense (1040 Sch A) | $ 48.17 |
Step 6: Shareholder’s adjusted gold held and cost basis
| Gold ounces Purchased on 1/31/2007 (Step 1) | 19.832428 oz |
| Less Gold ounces sold during 2007 (Step2) | -0.068926 oz |
| Adjusted Shareholder’s Gold ounces at 12/30/2007 | 19.763502 oz |
| Original Purchase Cost on 1/31/2007 | $10,000.00 |
| Less Cost of Gold Sold during 2007 (Step 3) | 34.75 |
| Adjusted Shareholder’s basis at 12/30/2007 | $ 9,965.25 |
Shareholder’s adjusted cost and gold ounces calculated in Step 6 are his/her adjusted basis for the 1/31/2007 purchase at the end of 2007.
Shareholders with several purchases should calculate gain, loss and adjusted basis separately for each purchased lot and then sum up the results of each lot to arrive at the net reportable gain or loss and the total investment expenses.
Shareholders that purchased their shares in 2006, and made no other purchases, should calculate their adjusted cost basis, using the 2006 information, by following the same steps as in the example above. The adjusted cost basis should be used as the beginning cost for 2007 instead of the original purchase cost. Shareholders with additional purchase in 2007 will have two cost lots to account for in 2007. The calculation of gains and losses will be affected by the cost basis method used to account for the sales.
- Download the information on this page in pdf
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- SPDR Gold Trust tax Information 2006 (29kb)
- SPDR Gold Trust tax Information 2005 (825kb)
- SPDR Gold Trust tax Information 2004 (39kb)
