Stepped-up basis:
the inheritance-vs-sale math.
Dying with Bitcoin can be more tax-efficient than selling it during life. The stepped-up basis rule resets cost basiscost basisWhat you originally paid for an asset. Used to calculate how much profit (or loss) you made when you sell.Full definition to market value at death, eliminating capital gainscapital gainsThe profit from selling an asset for more than you paid for it. Taxed differently depending on how long you held the asset. on everything before. See exactly how much your heirs save.
Difference between capital-gains tax on a lifetime sale vs near-zero tax on an immediate post-inheritance sale.
Stepped-up basis has been proposed for elimination in several recent budget proposals. The 2025 TCJATax Cuts and Jobs Act (TCJA)The big 2017 federal tax law. It nearly doubled the no-questions-asked tax deduction everyone gets, limited the deduction for state and local taxes to $10,000, and cut corporate and individual tax rates. Most of the personal tax cuts expire at the end of 2025 unless Congress extends them.Full definition exemption sunset is also scheduled. Verify current law before making estate decisions verify×DON'T TRUST, VERIFYClaim: Stepped-up basis has been the subject of repeated elimination proposals.Verify at: congress.gov bill search ↗ · IRS estate tax overview ↗Law can change. Consult an estate attorney for current treatment..
Gift vs inheritance: stepped-up basis applies to inherited assets. A Bitcoin gift during life passes your cost basis to the recipient; no step-up.
What this tool assumes
- Federal estate tax exemption is the 2026 amount ($13.99M per person, projected).
- State estate and inheritance taxes not modeled; 17 states levy one or both.
Not financial, tax, or legal advice. Consult an estate attorney.
HOW THIS IS CALCULATED
This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.