I received a 1099-B with info about a WHFIT investment I had made (IBIT) - the brokerage can provide no help - how do make sense of what was provided & report properly?

[ReneV4]

To report your WFHIT investment you made through IBIT, you will need more than your Form 1099-B.

Search your tax documents for a "Supplemental Tax Information, WHFIT Tax Statement, or Trustee Tax Information" report, which the broker is legally required to provide you to help you determine your cost basis.

Once you have your Form 1099-B and the Supplemental Information, you will also need to indicate that you are changing the basis that is being reported on Form 1099-B.

Here are the steps to follow to report your investment information, as well as how to indicate the change in basis:

The easiest way to input this information is to sort it by summarizing the sales section totals from your Form 1099-B, instead of entering each trade.

To do this, separate the section totals into their respective categories, for example:

• Short-Term Covered: (Box A) Basis was reported to the IRS
• Short-Term Non-Covered: (Box B) Basis was NOT reported to the IRS
• Long-Term Covered: (Box D) Basis was reported to the IRS
• Long-Term Non-Covered: (Box E) Basis was NOT reported to the IRS

You only need to make one entry for each category that has totals. If you have all 4 categories, you make 4 entries. If you only have Long-Term and Short-Term "Covered," you only make 2 entries.

1. Click on Wages & Income
2. Select Add more income
3. Scroll down to Investments and Savings and click down arrow
4. Select Stock, Crypto...(1099-B...)
5. Select Add investments, Add a different way
6. Select Stock, Bonds, Mutual Funds (1099-B)
7. Enter brokerage information, then Continue
8. In the "Tell us about the sales..." section, answer those questions, then Continue
9. In the "Now choose how to enter your sales", select Sales section totals, Continue
10. Note: Use the date provided in the Supplemental Tax Information statement for your WHFIT, if it differs from your original purchase date
11. Note: To adjust the basis, click on the box below the sales section, I need to adjust my total cost basis

If you choose to summarize, you will need to mail in a copy of Form 8453 to the IRS after you e-file so that they have documentation of your summary.

[Taxhound]

Wow, a very thorough response - better than what I expected to be honest, so thanks.  I do need to clarify - none of the IBIT investment was sold in 2025 so the only "sales" I can fathom from my research are the frequent periodic sales that Black Rock made to cover their management fee - the Brokerage (Schwab) has been most unhelpful despite me trying to get some guidance from their "Tax area", and their additional tax information does not explain what I am supposed to do with the information that was provided to me.  I did find an example online on the Black Rock web site on how to calculate a reduction in the cost basis of the shares I own as a result of the selling of tiny amounts to cover the periodic management fee, but the example provides no guidance on whether I need to report anything until I sell the shares.....do you know if I need to report anything prior to a sale of the shares?

[RobertB4444]

If they are selling shares on your behalf - even tiny amounts - then those are sales that need to be reported.  So you will need to report the amounts that appear on the 1099-B.  The 1099-B is only generated by sales.  So whatever is reported on the 1099-B definitely needs to be included on your tax return.