No, don't put .35 as the proceeds or cost basis until you have reviewed the 2021 Grantor Trust Tax Information document. Additionally, thank you for the follow-up information.
The GBTC holds no assets other than BTC tokens. Accordingly, when expenses are incurred, Trust assets (i.e., BTC tokens) are sold to cover the expenses.
Shareholders generally will be treated, for U.S. federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of the Trust’s income and proceeds, and directly incurred their pro rata share of the Trust’s expenses.
In order to calculate your 2021 taxable gain or loss from the sale of BTC to cover Trust expenses, you need to obtain the 2021 Grantor Trust Tax Information document. That document will provide examples and a step-by- step process on how to determine your cost basis and any taxable gain or loss based on the data you have in your 1099-B. The examples are at the end of the document, pages 15 - 17.
If you do not already have the 2021 Grantor Trust Tax Information document, you can obtain it from the Grayscale website at https://grayscale.com. At the top of the home page select Click here for 2021 Tax Information.
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