Cryptocurrency received from someone who has died. Basis resets to fair market value on the date of death, and the holding period is automatically long-term.
The step-up erases the decedent's built-in gain, so inherited coins sold near the date-of-death value produce little or no tax. The estate needs the private keys and a documented valuation on the date of death; without both, the step-up is hard to prove.
Use a reputable price source at a consistent time on that date and keep the record with the estate file. The same source should be used for every asset.
Source: IRC 1014
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
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