Are buying and selling the shares of the Grayscale Bitcoin trust, symbol GBTC, considered trading crypto on IRS form 1040?

Forum|Forum|3 years ago
April 16, 2022
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LeonardS

Yes, buying and selling the shares of the Grayscale Bitcoin is considered trading crypto on IRS form 1040?

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naviator2003

Pre Grayscale Bitcoin Trust ETF Tax Information for 2024:

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.

The underlying assets are Bitcoin, so yes, you own crypto if you own GBTC, and thus, you traded crypto.

JamesG1

Agreed. The IRS website Digital Assets states that you should answer YES to the 2024 digital asset question on the IRS 1040 income tax return if you had digital financial transactions.

You have a financial interest in a digital asset if you:

Are recorded as the owner of a digital asset
Have an ownership stake in an account that holds one or more digital assets, including the rights and obligations to acquire a financial interest.

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