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Neither. A custodial account was purchased in your behalf and became your account when you became an adult. If you sell the fund then your basis is what it was originally purchased for.
Ok, so then what dropdown option do I choose for the question "how did you receive this investment?"
Options are I purchased it, I inherited it, I received it in a divorce settlement, I received it as a gift, and I received it from a demutualization of a life insurance company.
Tax wise there is no difference between a custodial account and a gift since it was given to you by your grandparents.
For tax purposes, you "purchased" the shares.
The gift occurred when the money was put in the account. That made it "your" account at the time the shares were purchased.
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