4) Indicate the tax ramifications of liquidating the bond mutual fund. Indicate the gains or losses and whether they will be short-term or long-term. Key questions: What is the cost basis of an asset after death? What impact do reinvested dividends have on cost basis? Bond Mutual Fund Mary inherited a bond mutual fund from her uncle, Gary, who died December 10 , 2019 , at which time the fund was valued at $296,000. Gary had just bought the fund on November 1, 2019, and invested $290,000. All distributions are automatically reinvested in the fund. The fund has reinvested income of $11,800 in 2021, but unfortunately is only valued at $272,000 today due to changes in interest rates