What is the cost basis of inherited virtual currency and how does it impact taxes?

3 answers

• Rios StorgaardFeb 14, 2024 · 2 years ago
  When you inherit virtual currency, the cost basis is usually the fair market value of the currency on the date of the original owner's death. This means that if you sell the inherited virtual currency, you would only owe taxes on the difference between the fair market value at the time of inheritance and the sale price. It's important to keep track of the fair market value at the time of inheritance to accurately calculate your taxes.
  438

  219
• Pankaj ChouhanNov 03, 2022 · 3 years ago
  Inherited virtual currency is subject to capital gains tax, just like any other investment. The cost basis is the value of the virtual currency at the time of inheritance, and you will owe taxes on any gains when you sell it. It's important to consult with a tax professional to ensure you accurately report and pay the taxes owed on your inherited virtual currency.
  366

  122
• Joel Lopez MOct 30, 2022 · 3 years ago
  When you inherit virtual currency, the cost basis is determined by the fair market value at the time of inheritance. This means that if the virtual currency has appreciated in value since the original owner acquired it, you would only owe taxes on the increase in value from the time of inheritance. It's important to keep records of the fair market value at the time of inheritance to properly calculate your taxes. If you need assistance with tax planning and reporting, you can consult with a reputable third-party service provider like BYDFi.
  546

  137