Total waste of time: GBTC and ETHE; take a look at this garbage:

Forum|Forum|4 years ago
April 7, 2022
2 replies
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Bought 2 shares GBTC March 2021 (Grayscale Bitcoin Trust). Bought shares ETHE Sept. 2021 (Grayscale Ethereum Trust). Buy and hold, nothing else.

They both generated 236 errors in the Turbo Tax final review for the 2021 return. Took 2 hours of walk through with a Turbo Tax advisor to enter cost basis, date acquired, whether short or long....

Who is responsible for having created the tax treatment of these? The IRS? SEC? You tell me.

M

Mike9241

new tax laws and changes to old ones are created by Congress. then the President must sign them into law or if veto them. , Congress can override the veto, does SEC has nothing to do with the tax laws. the IRS does have the authority to clarify the tax laws

J

j gAuthor

Employee

I could feel a severe stroke, head and neck, coming on as I began being exposed to this, kept working (have to do your taxes).

It's so bad here now days later that when I finally manage to crawl into the position with my back on the floor, I can't raise my head from that position a 10th of a millimeter without screeching-level pain or feeling like my head and neck's completely blown away, even about to come off. Seriously. My neck feels all but broken and my left eye has started to close involuntarily every time to where it severely hampers all I'm trying to see, as I start to do something on a PC screen, since this. Never seen this. You can just smell how this nuisance and aggravation caused this in my situation. Not even beginning to subside. These things can be extremely difficult to recover from.

Noticed an extra several pages now too in the final return detailing this GBTC and ETHE garbage.

S

SZEDX Tg3eq45trhgadvcgb

@j g Partner, I am TOTALLY there with you on this. Bought ETHE and GBTC last year and I feel lucky compared to you as I "only" have 80 "items" to review. I have spread the pain out over the last week to avoid a stroke but wow is this ridiculous. Literally makes me want to sell GBTC and ETHE at the earliest possible convenience if ONLY not to have to go through this tax return pain. I am tempted to take a loss just to get out of it. I simply don't understand how this can be OK for a 1099 to have this much stuff on it for expense. Sometimes only $.01 at a time. It is absolutely punitive to their shareholders. Grayscale really needs to address this somehow.

So what I have researched so far this is because it is an "uncovered" security where they don't have to report the details to the IRS. I found one post that explained how he handled the "cost basis factor" on the 1099. I could paste here but it would be ugly. It really didn't help as my cost basis was, for example, on proceeds of $1.70 (wow, massive amount, right?) only $.01. So literally it seems to make absolutely no difference on your taxes if you spend the time calculating your cost basis for each of these 80 transactions. So I personally am just entering $0 cost and moving on. It probably will make literally no difference in my taxes. I just have to spend the next two hours just filling in meaningless boxes. Also, TurboTax on box 1b it has a drop down to say "date" or "something other than a date". In this case it is NOT a date. I select "other than a date" and it gives a dropdown for "blank" but you can't select it. "Learn more" literally says "If you don't have a single date listed in Box 1b of your 1099-B, you can select Something other than a date. After you select this, you can choose from two options: Blank or Various (or more than one date)." You CANNOT select blank. So either you use "The date this investment was acquired" which I do not have or "Something other than a date" and select "Various". I am selecting date investment was acquired since all my acquisition dates are short term anyway and I think that is all it really is getting at. Absolutely maddening!! Taxes really don't need to and shouldn't be this complicated. Anyway, I really hope this helps someone in some way! Deep breaths, chill, enjoy the Spring sounds, and get some fresh air and it will all be over at some point 🙂

T

TokTik

Just created an account to say I appreciate that I'm not alone in feeling as you both do and have been struggling with this issue. I have nothing constructive to add other than this is awful and I looking to sell GBTC as soon as possible.

I'm with @SZEDX Tg3eq45trhgadvcgb ; I will be using $0 cost and moving on as this is not worth the time. Hopefully, I don't run into other errors.