ishares COMEX Gold Trust 2005 Grantor Trust Tax Reporting Statement EIN:

Transcription

1 is COMEX Gold Trust 2005 Grantor Trust Tax Reporting Statement EIN: The following information is being provided to assist holders of the is COMEX Gold Trust with reporting of their taxable income, expenses, gain or loss for the calendar year The example provided herein is based on a US individual holder who purchased its is COMEX Gold Trust shares for cash. All holders should contact their own tax advisors as to the tax consequences of the information reported in Schedules A and B below. TAXATION OF THE TRUST The is COMEX 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 holders. TAXATION OF US INDIVIDUAL SHAREHOLDERS holders 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. holders 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 holder that purchases s for cash, its initial tax basis in its pro rata shares of the assets held in the Trust at the time it acquires its s will be equal to its cost of acquiring the s. Most state and local tax authorities follow US Income tax rules in this regard. However, holders should contact their own tax advisors as to the state and local tax consequences of the information reported on Schedules A and B.

2 per Per 01/21/ /24/ /25/ /26/ /27/ /28/ Per 01/31/ /01/ /02/ /03/ /04/ /07/ /08/ /09/ /10/ /11/ /14/ /15/ /16/ /17/ /18/ /22/ /23/ /24/ /25/ /28/ /01/ /02/ /03/ /04/ /07/ /08/ /09/ /10/ /11/ /14/ /15/ /16/ /17/ /18/ /21/ /22/ /23/ /24/ /28/ /29/ /30/ /31/

3 per Per 04/01/ /04/ /05/ /06/ /07/ /08/ /11/ /12/ /13/ /14/ /15/ /18/ /19/ /20/ /21/ /22/ /25/ /26/ /27/ /28/ Per 04/29/ /02/ /03/ /04/ /05/ /06/ /09/ /10/ /11/ /12/ /13/ /16/ /17/ /18/ /19/ /20/ /23/ /24/ /25/ /26/ /27/ /31/

4 per Per 06/01/ /02/ /03/ /06/ /07/ /08/ /09/ /10/ /13/ /14/ /15/ /16/ /17/ /20/ /21/ /22/ /23/ /24/ /27/ /28/ /29/ Per 06/30/ /01/ /05/ /06/ /07/ /08/ /11/ /12/ /13/ /14/ /15/ /18/ /19/ /20/ /21/ /22/ /25/ /26/ /27/ /28/ /29/

5 per Per 08/01/ /02/ /03/ /04/ /05/ /08/ /09/ /10/ /11/ /12/ /15/ /16/ /17/ /18/ /19/ /22/ /23/ /24/ /25/ /26/ /29/ /30/ Per 08/31/ /01/ /02/ /06/ /07/ /08/ /09/ /12/ /13/ /14/ /15/ /16/ /19/ /20/ /21/ /22/ /23/ /26/ /27/ /28/ /29/ /30/

6 per Per 10/03/ /04/ /05/ /06/ /07/ /10/ /11/ /12/ /13/ /14/ /17/ /18/ /19/ /20/ /21/ /24/ /25/ /26/ /27/ /28/ Per 10/31/ /01/ /02/ /03/ /04/ /07/ /08/ /09/ /10/ /11/ /14/ /15/ /16/ /17/ /18/ /21/ /22/ /23/ /25/ /28/ /29/ /30/

7 per Per 12/01/ /02/ /05/ /06/ /07/ /08/ /09/ /12/ /13/ /14/ /15/ /16/ /19/ /20/ /21/ /22/ /23/ /27/ /28/ /29/ Per 12/30/ Totals Schedule A shows gold ounces acquired per is COMEX Gold Trust (IAU) share purchased. Identify the date on which the holder purchased its is COMEX Gold Trust (IAU) shares in the column labeled. The amount in the column labeled Gold Purchased per, represents the pro rata amount of gold, in ounces, that each IAU represents. Schedule B shows gold sold (in ounces), proceeds, and expenses per is COMEX Gold Trust (IAU).

8 Example: holder XYZ purchases 250 IAU shares on 1/31/2005 at a price of $40 per share for a total purchase price of $10,000. holder XYZ had no other purchases or sales of IAU shares during Step 1: Identify the shareholder s pro rata ownership of gold (in ounces). On Schedule A, identify holder XYZ s purchase date of 1/31/2005. In the column labeled per, identify the pro rata amount of gold (i.e ounces per share) each IAU share represents on that date. For holder XYZ, total prorated amount of gold ounces owned for its 1/31/2005 purchase is ounces ( ounces per share multiplied by 250 shares purchased on 1/31/2005.) Note: This step should be completed for each date on which IAU shares were purchased. Step 2: Calculate the gold (in ounces) sold from holder XYZ s account during 2005 From Schedule B, the gold ounces sold per share during 2005 includes the cumulative amounts of all gold sales for the period which includes the day after the purchase date of 1/31/2005 through the day of the sale date. Per Schedule B, during 2005 the amount of gold sold after the 1/31/2005 purchase date is oz per share for a total of oz (based on the purchase of 250 shares). There were no other gold sales during Step 3: Calculate cost of gold sold from holder s account Total Gold ounces sold (Step 2) X $10,000 = Gold ounces acquired (Step1) Cost of Gold sold = $ Step 4: Calculate holder s gain or loss on sales of gold for each lot purchased On Schedule B, identify all proceeds per share received by the Trust after holder XYZ s 1/31/2005 purchase date. During 2005, there were sales on every business day for the period of 2/1/2005 through 12/30/2005 which generated proceeds per share of $ Therefore, holder XYZ s gain or loss is determined as follows: Total Proceeds: $ per share X 250 shares = $ Less: Total cost of gold sold (Step 3) Total Reportable Gain $ 4.44 (1040 Sch D, Part I)

9 Step 5: Calculate holder s investment expenses On Schedule B, identify all expenses per share paid by the Trust after holder XYZ s 1/31/2005 purchase date. During 2005, the expenses paid were on every business day for the period of 2/1/2005 through 12/30/2005 which amounted to $ Therefore, holder XYZ s investment expenses are: Investment Expenses per $ Total s X 250 Total Investment Expense $ (1040 Sch A) Step 6: Calculate holder s Adjusted Gold held and Cost Basis Gold ounces Purchased on 1/31/2005 (Step 1) oz Less Gold ounces sold during 2005 (Step2) oz Adjusted holder s Gold ounces at 12/30/ oz Original Purchase Cost on 1/31/2005 $10, Less Cost of Gold Sold during 2005 (Step 3) Adjusted holder s basis at 12/30/2005 $ 9, holder s adjusted cost and gold ounces calculated in Step 6 are his/her adjusted basis for the 1/31/2005 purchase at the end of holders 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. This information is provided by The Bank of New York, the trustee of the is COMEX Gold Trust (the "Trustee"), subject to the terms, conditions and limitations of liability set forth in the Depositary Trust Agreement between Barclays Global Investors, N.A, as Sponsor and The Bank of New York, as Trustee dated as of January 19, Neither BGI, its affiliates nor the Trustee provides tax advice. Please note that(i) any discussion of U.S. tax matters contained in this communication including any attachments) cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein: and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.