Yes, I understand and I can confirm the cost basis for your mother.
The value/cost basis for your mother will be half of the original cost and half of the fair market value (FMV) on the date of death of her spouse.
Basis Adjustment After Death of Spouse Joint Tenant. If spouses hold property as joint tenants, the surviving spouse's total basis in the property is the following: One-half of the FMV of property on the date of the decedent's death, plus. One-half of the original cost basis, minus.
Regardless of the date of death on the 1099-B, the selection of 'inherited property' should be used for the sale date for the inherited portion.
If your mother, before the death of your father, has a long term holding period (more than one year) you can feel confident to use the 'inherited property' because it will all have long term capital gains tax treatment, just like the half she inherited. If your mother sold any of the equity shares that had a short term holding period (one year or less), split the sale in half to use your mother's actual holding period. This would only need to be done if the holding period for the equity shares was short term before your father's death.
@CelBar
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