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Crypto Inheritance Tax Guide for Digital Asset Transfer (2026)

Report crypto inheritance tax: stepped-up basis, estate transfer, beneficiary reporting, and cryptocurrency inheritance.

Summary

Inherited crypto gets stepped-up basis. This guide explains basis adjustment, estate transfer, and beneficiary reporting.

Key Steps

  1. 1Stepped-up basis: inherited crypto valued at decedent's date of death.
  2. 2No immediate tax: beneficiary owes no tax at inheritance receipt.
  3. 3Track FMV: obtain date-of-death valuation from exchange records.
  4. 4Future sale: use stepped-up basis, not decedent's original cost.
  5. 5Estate tax: large estates may owe estate tax before distribution.

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