Scenario is this: son was trustee and invested extra savings in cryptocurrencies while father was alive and not able to make his own decisions. A few additional cryptocurrencies were purchased after the death of the father. The cryptocurrencies go up a great deal in value.

Are all the cryptocurrencies eligible for a stepped-up basis, based on the date of the distribution from the trust? [The two beneficiaries agreed to keep the cryptocurrencies invested until a later time this year, when prices are expected to be higher, and to avoid paying extra commissions.]

Or would only the cryptocurrencies bought before the death of the father be eligible for a stepped-up basis? And thus in gains on the cryptocurrencies bought after the death would be reported on the final income tax return of the father (the trust elected the pass thru option when the EIN was requested).


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