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I was gifted a mutual fund from Mom in 1995. She died in 2007. How is cost basis of the fund determined should I ever sell it?

Since it was gifted to you, you use the cost basis that the giver had.

Partially right.

If the shares of the mutual fund you received were worth more when you received them than your mother's cost basis you would use her cost basis. However, if they were worth less, you would use her cost basis to determine any gain when you sell, but you would use their value on the gift date to determine any loss when you sell.

If she paid any gift tax on the gift to you, there would be a cost basis adjustment for the gift tax.

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