Best Crypto Tax Software for Inherited Assets

Inheriting cryptocurrency is, in some ways, a rare piece of good news in the tax code. Under IRC §1014, inherited property receives a new cost basis equal to its fair market value on the date of the original owner's death—wiping out all prior appreciation and resetting the ledger to zero gains.12 The IRS classifies cryptocurrency as property under IRS Notice 2014-21, so this step-up applies to Bitcoin, Ethereum, and any other digital asset in the estate.2 Inherited assets also automatically qualify for long-term capital gains rates regardless of how long the decedent held them.48

Here's the catch: no exchange or tax software automatically detects or applies the step-up. Starting with the 2025 tax year, exchanges report via Form 1099-DA, and your exchange may ask you to provide the inherited cost basis yourself since step-up is not built into their system.4 Executors must also file IRS Form 706 to report digital assets in the estate properly.1 For 2026, the federal estate and gift tax exemption sits at $15 million per individual, so most estates won't owe estate tax—but the basis documentation still matters enormously when the heir eventually sells.2

That means the right crypto tax software needs to do three things: let you import inherited wallets or exchange accounts, manually set the stepped-up cost basis at date-of-death FMV, and generate a defensible Form 8949 report for filing. We evaluated five leading tools through that lens.

> Disclosure: Recomate may earn a commission when readers sign up through links on this page. That doesn't influence our rankings—every pick is evaluated on its merits for inherited-asset reporting.

How We Evaluated

Every pick was assessed on three dimensions that matter specifically for inherited crypto:

• Cost basis control — Can you manually enter a stepped-up basis? How granular is the editing? This is the single most important feature for heirs, since no software auto-detects step-up.
• DeFi and on-chain handling — If the deceased held assets in self-custody wallets, staking positions, or DeFi protocols, can the software reconstruct that history after death?
• CPA and audit support — For high-value estates, can you get professional review and audit defense?

The Picks

1. Summ (formerly CryptoTaxCalculator) — Best for Complex Inherited DeFi Positions

Summ ranks #1 among CPA-reviewed crypto tax tools for complex portfolios, thanks to a strong on-chain transaction engine that handles staking, forks, and DeFi activity post-death.3 For inherited assets, the key feature is the manual "Add Transaction" button: rather than directly editing a cost basis field, you add a missing "buy" or acquisition transaction dated at the date of death, with the FMV as the purchase price. This works with the FIFO inventory method and ensures the stepped-up basis flows through to your Form 8949.5

If the deceased held crypto across multiple wallets, liquidity pools, or staking validators, Summ's reconciliation engine is the most capable at reconstructing that history. The trade-off is that the manual transaction approach requires care—you're responsible for getting the date-of-death valuation right—but for complex estates, that precision is exactly what you want.

Why it's our top pick: No other tool matches Summ's combination of on-chain depth and manual basis control. For heirs dealing with anything beyond simple exchange holdings, this is the tool most likely to produce a defensible report.

2. Koinly — Best Balance of Usability and Function

Koinly hits a sweet spot for moderate estates. Its manual transaction feature lets you add deposits with a custom "worth" field—directly useful for setting an inherited cost basis where the original payment method isn't tracked.6 You enter the inherited asset as a manual deposit, set the worth to the date-of-death FMV, and Koinly treats that as your acquisition cost.

Koinly also offers wide exchange and wallet coverage, making it easier to import the deceased's transaction history from multiple sources.3 It's more approachable than Summ for heirs who aren't deeply technical, while still providing the manual basis entry that inherited assets require. For estates with a mix of exchange-held and wallet-held crypto that doesn't involve exotic DeFi positions, Koinly is the practical middle ground.

3. TokenTax — Best for High-Value Estates Needing CPA Review

When the inherited portfolio is large, complex, or likely to face IRS scrutiny, TokenTax's concierge model is the differentiator. The platform blends software with white-glove CPA service staffed by crypto-specialist accountants who can review your stepped-up basis calculations, reconcile complex histories, and provide audit defense.3

This is the most expensive option on our list, but for a high-value estate—say, crypto holdings well into six or seven figures—the cost of professional review is small relative to the tax exposure. If you're an executor or heir who wants a CPA to sign off on the basis documentation before filing, TokenTax is purpose-built for that workflow.

4. CoinTracker — Best for Simpler Inheritances

CoinTracker shines when the inherited crypto was held on exchanges and the holdings are straightforward. Users can edit the cost basis of individual transactions, and the platform supports FIFO, HIFO, and LIFO methods (Ultra plans even allow different methods per tax year).7 Its TurboTax integration makes the final filing step seamless for heirs who already use TurboTax for their personal returns.3

Under the new IRS 1099-DA rules, CoinTracker's cost basis settings must match your exchange settings—so if the exchange reports one basis and you've set a different stepped-up basis in CoinTracker, you'll need to reconcile that manually.7 For exchange-held crypto with a clear date-of-death valuation, this is manageable. For self-custody wallets or DeFi positions, look elsewhere.

5. CoinLedger — Best Budget Option for Simple Exchange-Only Inheritances

CoinLedger is the most streamlined and affordable option for heirs who inherited crypto held entirely on exchanges. The onboarding is simple, the pricing is accessible, and it generates Form 8949 for straightforward cases without requiring wallet reconstruction or complex reconciliation.

The limitation is clear: CoinLedger is built for exchange-imported transactions, not for self-custody wallets or DeFi positions. If the deceased left behind a hardware wallet with staking rewards or liquidity pool tokens, CoinLedger won't have the tools to handle that. But for the common case of an heir who inherits Coinbase or Kraken holdings and just needs to set a stepped-up basis and file, it's the most cost-effective path.

How to Document Date-of-Death FMV

Regardless of which tool you choose, you'll need to establish the fair market value of each inherited asset on the date of death. Here's the practical approach:

1. Exchange records — If the crypto was held on an exchange, download the transaction history and note the closing price on the date of death. Exchanges may provide this even after the account holder has passed, with proper executor documentation.
2. Price databases — For wallet-held crypto, use CoinMarketCap or CoinGecko historical price data for the date of death. Screenshot and save the valuation page with the date visible.
3. Professional appraisal — For high-value estates, consider a qualified appraisal. TokenTax's CPA concierge can assist here, or you can engage an independent crypto-aware appraiser.

Document everything. The stepped-up basis is only as defensible as the records behind it.14

Bottom Line

No crypto tax software automatically applies the §1014 step-up in basis—that's always a manual entry. The question is which tool makes that entry easiest and most defensible for your situation:

• Simple exchange-held crypto → CoinTracker or CoinLedger
• DeFi, staking, or self-custody wallets → Summ
• High-value or complex estate needing CPA sign-off → TokenTax
• Moderate complexity, good usability → Koinly

The right pick depends on what the deceased left behind—and how much documentation you'll need to stand behind if the IRS asks.

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