A parent passed away in 2020 and bequeathed me a Muni mutual fund. In order to liquidate the funds the bank required me to setup an account and transfer the assets.

[Semantax]

I am now receiving a 1099-B from the bank, showing the parent's original cost basis, therefore increasing the taxable net.   I liquidated the fund immediately after transferring to the my account, so had no holding period. I believe I should select the option "Some or all of the proceeds from this sale do not belong to me" and leave the adjustment option blank, but would appreciate guidance from the community. Thanks in advance!

[tagteam · Accepted solution]

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@Semantax wrote:
I believe I should select the option "Some or all of the proceeds from this sale do not belong to me" and leave the adjustment option blank, but would appreciate guidance from the community. 

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No, you should indicate that the fund was inherited (i.e., type "inherited" in the date acquired box) and that the holding period is long-term.

Your basis for the fund is the fair market value on the date of death of the decedent.