Question 1 - No, the management fees you paid in connection with owning the GBTC are akin to miscellaneous investment related expenses, and as a result of the Tax Cut and Jobs Act, are no longer deductible. Miscellaneous investment related expenses include such things as fees for investment advice, IRA custodial fees, and accounting costs necessary to produce or collect taxable income.
Investment interest expenses, such as the interest paid on money borrowed to purchase taxable investments, is deductible but only if, among other things, you itemize your deductions.
Question 2 - Yes. Based on the 2022 Grantor Trust Tax Information, a shareholder in the GBTC needs to compute--by following steps one through six-- the sale of their pro-rata share of Bitcoin to pay trust expenses and also to determine their adjusted cost basis.
@kire589
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