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Your situation is complex, but I'll break it down and provide some clarity on how capital gains tax would likely be calculated for your UTMA account:

1. Cost Basis Adjustment:

The cost basis you're seeing in Fidelity is likely accurate. Here's why:

• When dividends and capital gains distributions are reinvested, they increase your cost basis.

• The “Total Capital Gains Distributions” you've been paying taxes on over the years have been increasing your cost basis.

• This is why your cost basis is close to the current value, despite the funds being held for decades.

2. Capital Gains Calculation:

• Your taxable capital gain will be the difference between the sale price and the adjusted cost basis.

• Given that your cost basis is close to the current value, your taxable gain may be relatively small.

3. UTMA Specifics:

• The UTMA status doesn't affect the capital gains calculation directly.

• However, it does mean that you, as the beneficiary, are now responsible for the taxes rather than your father.

4. Trust Fidelity's Cost Basis:

• Generally, you can trust the cost basis provided by Fidelity. They are required to track and report this accurately.

• If you're unsure, you can request a detailed history of all transactions from Fidelity to verify.

5. Long-Term vs. Short-Term Gains:

• Since these funds have been held for decades, any gains will be long-term capital gains, which are taxed at a lower rate.

6. Tax Reporting:

• When you sell, Fidelity will provide a 1099-B form showing the sale proceeds and cost basis.

• Use this information to report your capital gains on your tax return.

Given the complexity of your situation, it would be wise to consult with a tax professional who can review your specific circumstances and provide personalized advice. They can help ensure you're calculating and reporting your capital gains correctly.