The weekly GBTC fees are probably not deductible. Prior to the Tax Cut and Jobs Act, taxpayers were allowed a tax deduction for certain expenses known as “miscellaneous itemized deductions.” Miscellaneous itemized deductions included expenses such as fees for investment advice, IRA custodial fees, and accounting costs necessary to produce or collect taxable income. For tax years 2018 to 2025, these deductions have been eliminated.
If you itemize your deductions, you may be able to claim a deduction for your investment interest expenses. Investment interest expense is the interest paid on money borrowed to purchase taxable investments. However, in your situation, it does not appear that you are borrowing money, and incurring an interest expense. Rather, it appears that the fees you discuss are fees that GBTC charges the investors in connection with managing GBTC. As such, it does not appear that the GBTC fees are of the type of investment expense that might be deductible provided the taxpayer itemized their deductions.
If the GBTC fees were a type of commission paid in connection with owning the cryptocurrency, then such fees would not be deductible, either as business or nonbusiness expenses, but rather would be added to the taxpayer's cost of the cryptocurrency.
@Bphon2378
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
