Crypto Gift & Inheritance Tax Calculator 2026 β Bitcoin & Altcoins
Calculate tax on gifting or inheriting cryptocurrency. Carryover basis for gifts, stepped-up basis for inheritance. 2026 annual exclusion $19,000, lifetime $15M.
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What the donor originally paid. For inheritance, this is the decedent's cost (overridden by step-up). $
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Donee's / Heir's Basis
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Gift Tax Impact (Donor)
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Embedded Gain Transferred
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Lifetime Exemption Used
Tax Analysis Breakdown
How to Use This Crypto Gift & Inheritance Tax Calculator
Select whether you are gifting or inheriting crypto, enter the current FMV and the donor's original cost basis. For inheritance, also enter the FMV at date of death (the stepped-up basis). The calculator shows the recipient's basis, any gift tax implications, and the embedded gain transferred.
Key Tax Rules
GIFT β Carryover Basis:
Donee's Basis = Donor's Original Cost Basis (if FMV > Basis on gift date)
Donee's Basis = FMV on Gift Date (if FMV < Basis β for loss purposes)
Annual Exclusion 2026: $19,000 per recipient
Lifetime Exemption 2026: $15,000,000 (per OBBBA)
INHERITANCE β Stepped-Up Basis:
Heir's Basis = FMV on Date of Death
Holding period: automatically long-term (Β§1223(11))
Estate tax threshold: $15M (2026)
Donee's Basis = Donor's Original Cost Basis (if FMV > Basis on gift date)
Donee's Basis = FMV on Gift Date (if FMV < Basis β for loss purposes)
Annual Exclusion 2026: $19,000 per recipient
Lifetime Exemption 2026: $15,000,000 (per OBBBA)
INHERITANCE β Stepped-Up Basis:
Heir's Basis = FMV on Date of Death
Holding period: automatically long-term (Β§1223(11))
Estate tax threshold: $15M (2026)
Example
Gift: You bought BTC at $20,000, now worth $100,000, gift to child:
Annual exclusion: $19,000 β covered.
Excess over exclusion: $81,000 β reduces your lifetime exemption.
Child's basis: $20,000 (carryover from donor).
Child's gain when selling at $100,000: $80,000 capital gain.
Inherited instead: Child's basis = $100,000. Zero gain on sale at $100,000.
Annual exclusion: $19,000 β covered.
Excess over exclusion: $81,000 β reduces your lifetime exemption.
Child's basis: $20,000 (carryover from donor).
Child's gain when selling at $100,000: $80,000 capital gain.
Inherited instead: Child's basis = $100,000. Zero gain on sale at $100,000.
Extended
Gift vs Sell Strategy + Married Gift Splitting
Optimal timing strategies for appreciated and depreciated crypto gifts
Gift vs Sell Strategy Comparison
Gift Splitting β Married Donors (Double Annual Exclusion)
Appreciated vs Depreciated Crypto β Which to Gift?
Frequently Asked Questions
What is the tax basis for gifted cryptocurrency?
When you gift cryptocurrency, the recipient inherits your original cost basis (carryover basis). If you bought 1 Bitcoin for $30,000 and later gift it when it is worth $80,000, your $30,000 basis carries over to the donee. When the donee eventually sells, their capital gain is calculated from your $30,000 basis, not the value at the time of the gift. The holding period also carries over for purposes of long-term vs short-term treatment. This means the embedded taxable gain transferred with the gift.
What are the 2026 gift tax annual exclusion and lifetime exemption amounts?
For 2026, the annual gift tax exclusion is $19,000 per recipient per year (indexed for inflation from the $18,000 2024 amount). You can give up to $19,000 in crypto (or any asset) to any individual each year without filing a gift tax return. If you give more than $19,000 to a single recipient in a year, you must file Form 709. The excess reduces your lifetime exemption. For 2026, the OBBBA (One Big Beautiful Bill Act) raised the lifetime exemption from $13.99M to $15M, meaning very few estates will owe federal gift/estate tax. Married couples can combine exemptions for $30M total.
How is inherited cryptocurrency taxed?
Cryptocurrency received through inheritance gets a "stepped-up basis" equal to the fair market value (FMV) on the date of the decedent's death. If the deceased bought Bitcoin at $5,000 and it was worth $70,000 on the date of death, the heir's basis is $70,000 β wiping out all the embedded capital gain. When the heir sells, only appreciation after the date of death is taxable. The heir also receives long-term capital gains treatment regardless of how long the decedent held the asset, because inherited property is deemed held long-term under IRC Β§1223(11).
When is it better to gift appreciated crypto vs gifting depreciated crypto?
Gifting appreciated crypto (worth more than your basis) transfers the embedded taxable gain to the recipient. This is advantageous if the recipient is in a lower tax bracket than you β they will pay less tax on eventual sale. If the recipient is in the 0% LTCG bracket (single filers with taxable income below ~$48,350 in 2026), they might sell tax-free. For depreciated crypto (worth less than your basis), gifting is generally NOT ideal because the recipient's basis for loss purposes is limited to the FMV at time of gift. Instead, you should sell the depreciated crypto yourself to realize the capital loss for your own tax benefit, then gift the cash proceeds.
Is there a federal estate tax on cryptocurrency in 2026?
The federal estate tax applies to estates with a taxable value above the exemption amount. For 2026, the OBBBA raised the exemption to $15M per individual ($30M for married couples). Cryptocurrency is included in the taxable estate at FMV on the date of death. With a $15M exemption, the vast majority of taxpayers will not owe federal estate tax even with substantial crypto holdings. The estate tax rate above the exemption is 40%. Note: some states have their own estate taxes with much lower exemptions (e.g., Massachusetts at $1M, Oregon at $1M).