So here I am in 2023 and still am perplexed how this works. It's a nightmare.
So it seems like there isn't going to be a 1099B Tax Form from my Brokerage (sale of proceeds taken each week for mgmt fees for GBTC). Therefore there is no cost basis factor that I can use to calculate the gains/losses for each tax lot. I opened a case with my brokerage and they said there wouldn't be one and sort of alluded to a section in the 2022 GBTC Tax document. It also seems that Wealthfront won't provide a Tax Calculator for this year for GBTC
From the GBTC Tax document:
"Because the Trust paid out only a de minimis amount of BTC for payment of Trust expenses during the year and made no distributions of sale proceeds to its Shareholders, under Treas. Reg. Sec. 1.671- 5(c)(2)(iv)(B) neither the Trust nor brokers are required to report the gross proceeds of Trust sales to Shareholders on Form 1099B. In lieu of Form 1099B, this information is contained in the attached 2022 Gross Proceeds File together with an example illustrating how a Shareholder should calculate gain or loss."
Did anyone else not receive a 1099B with the Undermined tax lot proceeds w/ cost basis factor?
I suppose I technically don't need it if I do all the steps in the form and use the adjusted cost basis of last year.
There are a few questions that still remain in my mind that I am still not 100% clear on:
1.Are these gains/losses tax deductible of the underlying bitcoin in GBTC (used for mgmt fees)? I think I reported these as deductible last year.
2. When you eventually sell the GBTC stock, you're supposed to adjust the cost basis of the tax lot when calculating the capital gains/loss of the stock itself. Use the new cost basis that you calculate every year instead of using the original cost basis when you purchased the stock through your brokerage. Is this correct?
