Other Assets: Synthesis
This section ties together the key exam distinctions across commodities, precious metals, and digital assets.
Tax Treatment Comparison
| Asset Type | Tax Rate | Key Rule |
|---|---|---|
| Physical precious metals | Max 28% collectibles | Internal Revenue Service (IRS) classifies as collectibles |
| Precious metals exchange-traded funds (ETFs) (GLD, SLV) | Max 28% collectibles | Treated same as physical |
| Futures contracts | 60/40 blended (Section 1256) | Regardless of holding period |
| Commodity producer stocks | Standard 20% long-term capital gains | Taxed as equities |
| Digital assets (all types) | Standard capital gains rates | IRS treats as property |
Regulatory Classification
| Asset | Is It a Security? | Regulator |
|---|---|---|
| Physical gold/silver | No | Commodity Futures Trading Commission (CFTC) / commodity regulators |
| Commodity futures | No (commodity contracts) | CFTC |
| Commodity ETFs | Yes (fund shares) | Securities and Exchange Commission (SEC) |
| Bitcoin/Ethereum | No (commodities) | CFTC |
| Most initial coin offering (ICO) tokens / altcoins | Yes (meet Howey test) | SEC |
| Security tokens | Yes | SEC |
Cross-Topic Exam Gotchas
Exam Tip: Gotchas
- Precious metals ETFs are taxed at 28% collectibles rate, not the standard 20% equity rate
- Futures get the 60/40 blended rate regardless of holding period
- Contango = futures price higher than spot (normal); backwardation = futures price lower than spot
- Bitcoin is a commodity (CFTC), not a security. The Howey test determines which digital assets are securities
- "Utility token" label is irrelevant. The Howey test applies to economic substance
- All digital assets are property for IRS purposes. No special currency treatment. Every crypto-to-crypto swap is taxable
- Mining and staking rewards are taxed as ordinary income when received
- Neither Federal Deposit Insurance Corporation (FDIC) nor Securities Investor Protection Corporation (SIPC) covers digital asset holdings
- Private key loss = permanent fund loss. No recovery mechanism exists