I think the simplest way to do this is to not calculate the basis for the tiny amount of the trust assets (ex. BTC) sold. If you do calculate the basis and use it to offset the proceeds for the BTC sold to pay trust fees, you will reduce your basis on your shares remaining in GBTC. If you don’t calculate the basis for the bitcoin sold by the trust, you will keep your basis the same and recognize a smaller gain in the future (assuming ur in a gain position). In other words, it’s a timing difference and the IRS will get their $$ a little bit ahead. But you have to consider the cost (your time and effort to do the calculations) vs. benefit.
On the flip side, the proceeds were used to pay trust investment expenses. Those expenses also flow through to your tax return. However, investment expenses are subject to the 2% floor, and the vast majority of us will probably be unable to recognize them.
Hope this helps….lots of confusion out there.
