For those who trade the currency/metal/energy ETFs, how do you deal with tax issues?

[PlusMinus]

It seems the biggest drawback of these ETFs is that you can have tax liabilities even when you have negative returns on your trades.

This seems clearer for buy and hold, but what about short term trading of these ETFs? It seems the tax issues would be even more complicated.

Any thoughts? And for those who don't know what I'm referring to, see here: http://seekingalpha.com/article/765...futures-etfs-don-t-get-caught-in-the-tax-trap

 

[wheatridge]

Trade them in a retirement account.

 

[PlusMinus]

Quote from wheatridge:

Trade them in a retirement account.

This comment below suggests that even doing that is not a guarantee against a disqualifying tax event for a retirement account:

http://seekingalpha.com/article/765...n-t-get-caught-in-the-tax-trap#comment-165611

 

[PlusMinus]

So are most people trading these in their IRAs?

 

[wheatridge]

I'm trading DTO and USO in my IRA. Still have to laugh every time I buy DTO to get short.

 

[Bok]

Is there a good book on this topic?

 

[wheatridge]

Very true if you are trading for income to live. However, if you are building wealth you don't need to withdraw proceeds until 701/2. Assuming you are making money, you have the compounding effect in your favor which makes a retirement account attractive in the first place.