Combining stock sales from the same holding , GBTC,

[karl22]

The download of my 1099 from TD Ameritrade shows 72 individual trades from Grayscale Bitcoin Trust BTC.  Can I combine these sales with a basis of zero, as one line item in TurboTax to show only the total on my 8949 form?  The tax liability would be the same as entering each sale individually.   I still own GBTC.

[ZoltanB45]

Turbo Tax actually asks the taxpayer if he or she wants to enter it in as a total. You will combine stocks sales, based on whether it was short-term, long-term, basis reported or not reported. 

[karl22]

Thanks but all these sales are listed as B type, basis not reported.  If I chose a zero basis, it seems that I still would need to submit a statement (paper, hardcopy) with my 1040 return.   These sales are also listed as an expense in the 1099B.

[JohnB5677]

Yes, you can post the combined stock sales as a summary.  But you're also correct that you have to send the IRS the backup information.

Turbo tax will generate a FORM 8949 for you.

Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return. If you receive Forms 1099-B or 1099-S.

You will attach your 1099-B and mail it to the IRS.

[karl22]

Thanks again.  So there is no way to do this in an e-file?  Must be hardcopy?

[DaveF1006 · Accepted solution]

You will still be able to efile, but you will need to mail in some forms. Turbo Tax will instruct you how to do this. You will mail a copy of a 8949, 1099-B, and form 8453.  Form 8453 will be generated in your return automatically since you are reporting summary stock sales. On the form is a mailing address for you to mail in your forms.

[petebarrios]

I have the same problem, in that I bought 50 shares of GBTC on 19 Jan 2021. I have not sold any shares of this stock. The amounts they report on one page of the 1099 as gains and the amounts they report on a different page as expenses are identical. I don't run this show, but I have inherited this problem on how to report this. I bought turbo tax to help me figure out what I owe on taxes. I gave them permission to import this information from my account and they can''t figure this out.  So much for Turbo Tax. I do not know why the SEC allow these people to report this on a daily basis. I am not a day trader, so I might just as well sell this stock and do away with this problem in the future. For now, I just have to figure out how to report this as short term, long term or what ever term applies. I figure that since I have held this stock for over a year, it should be long term. Any suggestions out there?

[GeorgeM777]

The GBTC shares referenced in your 1099-B may have been sold to cover trust expenses.  The Trust holds no assets other than BTC tokens.  Accordingly, when expenses are incurred, Trust assets (i.e., BTC tokens) are sold to cover the expenses.   The 2021 Grantor Trust Tax Information at page 15 describes what a shareholder needs to do given that Trust assets were sold in 2021 to cover expenses.  The steps are summarized below:

1. Step 1, we discuss how a Shareholder would determine his or her stake in the Trust (i.e., how many BTC tokens they own). 
2. Step 2, we discuss how much of his or her stake is sold throughout the year to cover expenses (and how many BTC tokens they still own). 
3. Step 3, we determine the Shareholder’s basis in the BTC tokens sold by the Trust. Gain or loss from this sale is determined in relation to the basis of the assets sold. 
4. Step 4, we determine the gain or loss from the sale of the assets and where the gain or loss is reported on the Shareholder’s tax return. 
5. Step 5, we calculate the Shareholder’s portion of the Trust’s expenses. 
6. Step 6, we determine the Shareholder’s new balance of BTC tokens at the end of the year and his or her new cost basis in the BTC tokens.

The Grantor Trust Tax Information also provides an example of how the above steps can be applied to a Shareholder who purchased GBTC during the year and held such investment for the entire year.  

The 2021 Grantor Trust Tax Information can be obtained from the Grayscale website at https://grayscale.com/products/grayscale-bitcoin-trust/  At the top of the webpage, select Click here for 2021 Tax Information and you will have access to the Grantor Trust Tax Information for 2021. 

@petebarrious