My wife and her father owned a mutual fund together. She was jtwros. He passed away late in the year. Fund was sold shortly thereafter. What would the cost basis be?

[fbc2k1]

My wife was put on as JTWROS when the fund was purchased.  I am guessing that she would pay full cost basis on one-half of the capital gains, and the FMV of the other half at time of her father's death.  Is this correct?

[Anita01 · Accepted solution]

If your wife was joint owner on the account from the beginning, then you are correct.  Even if she was added at a later date, then her cost basis on the half she inherited would still be Fair Market Value at this death and 1/2 his original cost  for the portion she was gifted.