Has anyone else done their 2008 taxes? Did you notice the monthly phantom gains reported on your 1099-B? What a hassle - you have to figure out your cost basis for each of these, and enter it in your schedule D. These "gains" are actually the management fees paid to IAU. You can report these fees as investment expenses, but investment expenses are only deductible when they exceed 2% of AGI. So most likely not deductible. Then you need to subtract the maintenance fees from your cost basis, so you will end up paying more taxes when you sell. The treasury is sure making it as painful as possible to hold a precious metal ETF, both tax wise and paperwork wise.