Iyon ang gusto ko.

A helpful rough breakdown is:

iyon = that
ang = a marker that points to the focused noun phrase here
gusto = want / like / preference
ko = my / I

So very literally, it is something like:

That [is] my want / the thing I want.

A more natural English rendering is That’s what I want or That’s the one I like, depending on context.

Iyon means that, usually referring to something farther away from both speaker and listener.

The common three-way distinction is:

ito = this, near the speaker
iyan = that, near the listener
iyon = that over there, farther from both

In real conversation, these distance distinctions are not always strict, but they are the basic pattern.

Not exactly. Ang is not simply the Filipino word for the.

In Filipino, ang is a marker used for the noun phrase that is being highlighted, identified, or treated as the main item in the sentence. In Iyon ang gusto ko, the phrase ang gusto ko means something like the thing I want or what I want.

So here ang helps mark gusto ko as the phrase being identified by iyon.

A useful learner-friendly way to understand it is:

iyon = that
ang gusto ko = what I want

So: That is what I want.

It can mean want, like, or be fond of, depending on context.

For example:

Gusto ko ito. can mean I like this.
Gusto ko ng tubig. can mean I want water.

So in Iyon ang gusto ko, the most natural translation may be:

That’s what I want
or
That’s the one I like

Context tells you which is better.

Yes, ko is the genitive form of I, and it often corresponds to my, me, or I in English depending on the structure.

With gusto, Filipino uses ko to mark the person who wants or likes something:

gusto ko = I want / I like
literally closer to my liking / my desire

So ko comes after gusto because Filipino pronouns often follow the word they relate to.

This is very normal: gusto ko = I want / I like
bahay ko = my house
kaibigan ko = my friend

Because Filipino often leaves out the verb to be in simple equational or identifying sentences.

So English says:

That is what I want.

But Filipino can simply say:

Iyon ang gusto ko.

There is no need for a separate word meaning is here.

This is very common in Filipino. The sentence is complete without a copula.

Both are possible, but they are not exactly the same in emphasis.

Gusto ko iyon. = I want that / I like that.
This is a straightforward statement.

Iyon ang gusto ko. = That’s what I want / That’s the one I like.
This puts more focus on that one, often with a sense of selection, contrast, or clarification.

For example, if several options are being discussed, Iyon ang gusto ko sounds like:

That one — that’s what I want.

So the version in your sentence is especially natural when pointing out or identifying the specific thing you prefer.

Yes, but the more natural place for ay would be in:

Ang gusto ko ay iyon.

This also means What I want is that or That is what I want.

A key point: ay is not the same as English is. It is more of a linker used in certain sentence patterns, often in more formal, careful, or written style.

In everyday speech, Iyon ang gusto ko is very natural and common.

The sentence is perfectly correct, but in casual speech many speakers shorten iyon.

Common spoken forms include:

’Yon ang gusto ko.
Yun ang gusto ko.

These are very common in conversation.

So: Iyon ang gusto ko = standard and correct
’Yon / yun ang gusto ko = very natural in everyday speech

A simple learner-friendly pronunciation is:

ee-YON ang GOOS-toh koh

A few notes:

iyon sounds like ee-YON
ang is roughly ahng
gusto is GOOS-toh
ko is koh

In natural speech, many people say ’yon or yun, so you may often hear:

yun ang gusto ko

In formal writing, iyon is the standard spelling.

In informal writing, texting, chat, and dialogue, people often write:

’yon
yun

These shortened forms reflect natural speech. As a learner, it is best to recognize all three, but use iyon when you want the safest standard form.

Yes: the biggest difference is that Filipino does not package this idea the way English does.

English learners often expect something like:

That is what I want

with a clear subject, verb, and complement.

But Filipino often uses a structure more like:

That — the thing I want

with no separate is, and with ang marking the key noun phrase.

So rather than forcing it into English grammar, it helps to learn the whole pattern as a natural Filipino structure:

X ang gusto ko = X is what I want / X is the one I like

Examples: Ito ang gusto ko. = This is what I want.
Iyan ang gusto ko. = That is what I want.
Iyon ang gusto ko. = That over there is what I want.