topic Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin trust)? in Business & farm

Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin trust)?

dougb4 — Mon, 09 Mar 2026 08:08:27 GMT

Is the greyscale (GBTC) 2% fee deductible? If so, is there a place where i can deduct the fee?

Re: Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin trust)?

Bsch4477 — Sun, 13 Mar 2022 20:01:47 GMT

Those fees are not deductible.

Re: Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin tru...

MinhT1 — Sun, 13 Mar 2022 20:04:37 GMT

No. These investment expenses are no longer deductible since 2018 as they have been suspended by the Tax Cuts and Jobs Act.

Re: Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin tru...

dougb4 — Sun, 20 Mar 2022 17:22:38 GMT

thank you so much!!

Re: Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin trust)?

dougb4 — Sun, 20 Mar 2022 17:23:00 GMT

thank you : )

Re: Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin tru...

dougb4 — Sun, 20 Mar 2022 17:23:36 GMT

thank you ; )

Re: Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin tru...

huythatminhton — Sun, 03 Apr 2022 20:21:30 GMT

However, whey Grayscale sells the underlying BTC to pay (themselves) this 2% fee, per grayscale, the investor (us) have to report that as a sale. That causes our portion of BTC ownership to decrease (even though our share of GBTC stays the same). Besides incurring an immediate realized capital gain(loss), that sale also causes a corresponding 2% decrease in our cost basis (which is calculated based on the remaining number of BTCs owned). So we get hit with a phantom unrealized capital gain of 2%, (assuming GBTC price stays flat throughout) on paper and without ability to deduct the expense? Something is very bad for investor.

Re: Can i deduct the monthly 2% "investment expense" being charged by GBTC (greyscale bitcoin tru...

GeorgeM777 — Mon, 04 Apr 2022 17:04:05 GMT

You are correct in that 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.

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.

@huythatminhton