Question on covered call ETF (SPYI/GPIX) “return on capital” and “cost basis” when the owner is deceased and the ETF is inherited by spouse or child.
Suppose if the owner had purchased $100,000 GPIX and held it for 10+ years, collected distributions as ROC the cost basis has been reduced to zero.
During this time the ETF has doubled to $200,000 in market value.
Now suppose if the owner passed away and the fund is inherited by spouse or child.
What would be the “cost basis” when inherited and potential tax implications?