Thanks for your response.
I am not talking about oil or gas depletion. Perhaps that was in the TurboTax example.
I am using 2022 Home and Business Desktop Software. In the software, you can navigate to the screen for Personal Deductions > Investment Interest Expense. Here the first screen is for Margin Interest Expense - most definitely deductible. Then navigate to the next screen, which is called "Investment Expenses" - here certain types of investment expenses are deductible and there are a couple of examples.
My case is "Proceeds Investment Expense" from Grayscale Bitcoin Investment Trust. The trust periodically sells Bitcoin in order to cover its fees. On the 1099, they report both the gains/losses of pass-through transactions, which get populated in Schedule D. They also list the "Proceeds Investment Expense" which appears to be the pass-through of the expense that is covered by the bitcoin sales (since the total amounts are the same.)
Because this is a pass-through expense, I thought it would be deducible on the specific screen I mention in Turbotax, which then populates into "Form 4952 Investment Interest Expense Worksheet"
So is this one of the expenses which is deductible where I describe?
