Are funds from Coinbase account of deceased son taxable?

Forum|Forum|2 months ago
April 16, 2026
1 reply
9 views

Son had no estate when he passed. Nine years later CoinBase contacted parents about son's balance as bitcoin. Parents claimed the balance and cashed it out. Are the funds taxable?

TurboTax Online

AnnetteB6

Level 15

The proceeds from selling and cashing out the bitcoin could be taxable.

It would be a similar situation if they had inherited stock from their son. The bitcoin would have had a certain value as of the son's date of death. This value would be converted into dollars and that is the basis for the bitcoin. Then, when it was cashed out or sold, the proceeds in dollars is compared to the basis to determine if it was a gain or a loss.

The overall transaction is reported on Schedule D as the sale of an inherited holding.

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