<prompt> Human: Im 30. I had 25,000 in a UTMA through Fidelity that I was not aware of until last year, and the assets in it mutual funds were eventually transferred to my Fidelity brokerage account. Fidelity shows the cost basis of the funds as 0 or close to it. If the funds are sold, would all 25,000 be taxed? Would it be taxed as income or capital gains? I googled it and it seems that the purpose of this account is to take advantage of a childs lower income tax rate, so I dont know where that comes into play.  <response>: Nah. Fidelity just doesnt know the cost basis because brokerages werent required to track them before 2011. You can guess by looking up the mutual funds on Morningstar. 