Inherited crypto and gold tax

What is the tax treatment of inherited crypto?

When you inherit cryptocurrency, the main questions are whether you owe tax as soon as you receive it and how you’ll be taxed when you decide to sell it. In most countries, an inheritance itself isn’t treated as taxable income. But things change if you sell your crypto later, then gains or losses come into play.

Both crypto and gold can fluctuate in value, and each can be tricky to access if records or passwords are missing. A sudden drop in price after you inherit isn’t unusual; heirs sometimes end up with less than they expected. Physical gold can also lose value while you sort out the estate, and the form it’s held in (coins, bullion, ETF) may affect what happens next.

Stepped-up basis versus carried-over cost basis

The cost basis is the number you’ll use to calculate profit or loss when you sell an inherited asset. For inheritance, the rules differ by country. Are you starting from the asset’s value on the date of death (a stepped-up basis), or do you have to use what the deceased originally paid (a carried-over basis)? Here’s how cost basis works in detail.

• Stepped-up basis: You use the asset’s value at the date of death. Any gains before that are not taxed when you sell. The U.S. uses this for most types of property.
• Carried-over basis: You use the original purchase price. If your parent bought bitcoin for 2,000 and it’s worth 15,000 at their death, that entire gain can be taxed if you sell for more than 2,000.

This matters because some areas tax only if you sell the inherited asset, while others charge a separate inheritance tax based on what you receive. Check both the local rules where you live and those in the country where the estate is based.

Valuing crypto and gold on the date of death

Authorities almost always require a market value as of the date of death or transfer. For crypto, you’ll need a price from a major exchange or recognized price index at that date and time, no rounding off to last week’s number. If the holding is gold, look up the spot price (the immediate market price for gold) at that time and add any premium if the metal was bought through a dealer.

There may be delays or complications. Online accounts could be inaccessible; wallets might need passwords or recovery phrases, and supporting documents aren’t always available. Store exchange statements, wallet logs and purchase receipts carefully so you can document values. For rare coins or unusual tokens, you’ll sometimes need an independent appraisal.

And if you sell the gold later, you'll face different tax rules. See tax on profits from selling gold and silver for details.

Worked example: inheriting bitcoin and selling later

Say your mother bought bitcoin for 5,000 euros, and at her death, it was worth 20,000 euros. You inherit the asset. This is just a sample scenario. If your country uses a stepped-up basis, your value starts at 20,000 euros. Sell it later for 25,000 euros, and your taxable gain is 5,000, that’s 25,000 minus 20,000.

But if a carried-over basis applies, you’d start from 5,000 euros. In this case, selling for 25,000 means a gain of 20,000 could be taxed. The potential tax difference is substantial, depending on which rule applies. If the bitcoin drops in price after inheritance, you might even have a loss instead.

Frequently asked questions