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tktt
Returning Member

Gross proceeds reported for FBTC (bitcoin ETF) on 1099-B; I sold no shares; how report to 8949

The FBTC bitcoin ETF reported gross proceeds every month to my 1099-B starting 8/31/24 each with a small dollar amount and quantity of zero shares.  I never sold any shares of this fund. The broker did not calculate gain or basis for me. From the below linked Fidelity article I see this is because the fund sold miniscule quantities of its bitcoins to pay the fund expenses and that these sales pass through to me. The article then explained all the math, which I understand, and I calculated my basis, gain, and representative number of bitcoins sold for each sale of each lot of this fund, as I bought shares several times.

 

My question is, what should I enter for the "Description of Property" that will appear on my form 8949? (If I had sold shares, I would write something like "20 Sh FBTC" if I had sold 20 shares.) But in this case, it's zero shares and it is the underlying bitcoins represented by my shares that were sold and I am wondering how others describe the asset sold.

 

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/research/1185828.1.0-FBTCWHFITAnn...

 

P.S. I understand that I must adjust the basis of each lot of shares I own separately for these bitcoin sales to pay fund expenses, regardless of whether I will eventually choose to sell the shares by FIFO, average cost basis, identified lots. I  also understand the investment expenses paid are not deductible while I must report small gains to pay for nondeductible investment expense.

 

Thank you

 

 

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1 Reply
JamesG1
Expert Alumni

Gross proceeds reported for FBTC (bitcoin ETF) on 1099-B; I sold no shares; how report to 8949

You determine your proceeds and cost basis per the instructions in the document.

 

Are you then required to manually enter an IRS form 1099-B into the software based upon the calculations that you made?  

 

You are not provided an IRS form 1099-B?

 

Would your description be "Per Share Bitcoin Sold 11/30/2024"?

 

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