Eaton Vance 2013 Tax Guide

Transcription

1 aton Vance aton Vance 2013 Tax Guide Our Investment ffiliates aton Vance Management

2 ontents 2013 orm 1099-DIV orm 1099-B orm orm 1099-R orm nswers to ommonly sked Questions 12 Dear Shareholder: aton Vance unds P.O. Box 9653 Providence, RI (800) eatonvance.com We are pleased to provide you with the aton Vance unds 2013 Tax Guide. This valuable resource was developed to help you understand the various documents required to prepare your tax filing. You may also access your tax information by securely logging into your account on our website: eatonvance.com. Please look through this information carefully and share it with your tax advisor when preparing your 2013 tax filings. Should you have any questions, please don t hesitate to contact an aton Vance representative at , Monday through riday from 8:30 a.m. to 5:30 p.m. astern time, or consult your tax advisor. Mutual fund shares are not insured by the DI and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested aton Vance Two International Place Boston, M eatonvance.com 1

3 2013 orm 1099-DIV Dividend and apital Gain Distributions very shareholder, with certain exceptions as provided in by the Internal Revenue ode, who has received $10 or more in taxable dividends or distributions receives a orm 1099-DIV. orm 1099-DIV is also sent to account holders for whom backup withholding was taken on certain reportable transactions. Your orm 1099-DIV lists all federally taxable dividend and capital gain distributions of $10 or more paid to your mutual fund accounts. If your account is invested in more than one fund, the 1099-DIV information for each fund has been consolidated and mailed to you in a single package. However, shareholders with more than one type of account for example, an individual account and another account that is jointly owned will receive a separate package of tax forms for each account. The dividends and capital gains shown on orm 1099-DIV need to be reported on your 2013 federal income tax return, even if you reinvested your distributions in additional fund shares instead of receiving them in cash. If you have one of the following types of accounts, you will not receive orm 1099-DIV: Individual Retirement ccounts and other tax-deferred accounts (including Roth and Traditional IRs, Rollover IRs, SP and SIMP IRs, overdell ducation Savings ccounts and qualified tuition plan accounts) Pension, 403(b), profit sharing and money purchase plans ccounts owned by corporations, documented nonresident aliens and certain tax-exempt organizations oreign Investment Distributions orm 1099-DIV may list a foreign tax credit that the und paid with gross distributions. If an amount is shown in box 6, please refer to the instructions for filing your personal income tax return. Recipient s Name and ddress: JOHN Q PUBI JN Q PUBI JOINT TNNTS 99 MIN STRT HOMTOWN NY OMB NO ORM 1099-DIV Dividends and Distributions opy B for Recipient RIPINT S IDNTIITION NUMBR ORRTD (If hecked) Payer s Name: M INTRNTION QUITY UND Payer s ederal ID Number: und & ccount Number: a. Total ordinary dividends $ b. Qualified dividends $ a. Total capital gain distributions $ b. Unrecap. sec gain 2c. Section 1202 gain 2d. ollectibles (28%) gain 3. Nondividend distributions 4. ederal income tax withheld 5. Investment expenses 6. oreign tax paid $ ash liquidation distributions 10. xempt-interest dividends 11. Spec private activity bond interest dividends 12. State 13. State identification no M State income tax withheld $7.50 Payer s Name: M INTRNTION QUITY UND Payer s ederal ID Number: und & ccount Number: a. Total ordinary dividends $ b. Qualified dividends $ a. Total capital gain distributions $ b. Unrecap. sec gain 2c. Section 1202 gain 2d. ollectibles (28%) gain 3. Nondividend distributions 4. ederal income tax withheld 5. Investment expenses 6. oreign tax paid $ ash liquidation distributions 10. xempt-interest dividends 11. Spec private activity bond interest dividends ORM 1099-DIV (Keep for your records) ccount registration and address B Your Taxpayer Identification Number; this information may or may not be masked The und s name D Total amount of qualified and nonqualified dividends and short-term capital gains distributed in 2013 Shows unrecaptured Section 1250 gain from certain depreciable real property ists any part of your distribution that is nontaxable because it is a return of your cost or other basis G Box 6 lists your proportionate share of any foreign taxes you paid in or additional information, please call: B D G H I J K M N O P Q R S T 12. State 13. State identification no M H mount of tax-exempt interest subject to the lternative Minimum Tax (MT) I The und s ederal Taxpayer Identification Number J mount of qualified dividends distributed in 2013 K Section 1202 gain mount of taxes withheld if you were subject to backup withholding M Total amount of liquidation distributions paid to you in 2013 N Shows State and State Identification number (state where state taxes were withheld from) O Your und and account number 14. State income tax withheld $7.50 P Department of the Treasury - Internal Revenue Service Total amount of longterm capital gains distributed in 2013 Q Shows 28% rate gain from sales or exchanges of collectibles R S T Your share of expenses of a nonpublicly offered regulated investment company, generally a nonpublicly offered mutual fund mount of tax-exempt interest, including exempt interest dividends from mutual fund, paid in 2013 mount of state taxes withheld if you were subject to backup withholding The information on your orm 1099-DIV is reported to the IRS. 2 3

4 2013 orm 1099-B Proceeds from Redemption or xchange of Securities ll redemptions (sales) or exchanges made in non-retirement mutual fund accounts, except money market accounts, must be reported on orm 1099-B. orm 1099-B reports the gross proceeds from the sale or exchange of your mutual fund shares in 2013 less any contingent deferred sales charge deducted from the gross proceeds of the transaction. ffective tax year 2012, orm 1099-B will also report cost basis information for your mutual fund redemption(s), if available. The layout of orm 1099-B has changed significantly and information is now broken out into the following five sections based on the categorization of the redemption and the cost basis information available: Section 1: Short-Term Transactions for Which Basis Is Reported to the IRS. If information is reported in this section, the portion of the redemption is categorized as a short term capital gain. The cost basis information listed in boxes 3, 5 and 6a will be reported to the IRS. This information should be transposed onto orm 8949 where further adjustments may be made, if necessary. Section 2: Short-Term Transactions for Which Basis Is Not Reported to the IRS. If information is reported in this section, the portion of the redemption is categorized as a short term capital gain. The cost basis information listed in boxes 3, 5 and 6a will not be reported to the IRS. This information can be used as a guide to help determine your cost basis. Section 3: ong-term Transactions for Which Basis Is Reported to the IRS. If information is reported in this section, the portion of the redemption is categorized as a long term capital gain. The cost basis information listed in boxes 3, 5 and 6a will be reported to the IRS. This information should be transposed onto orm 8949 where further adjustments may be made, if necessary. Section 4: ong-term Transactions for Which Basis Is Not Reported to the IRS. If information is reported in this section, the portion of the redemption is categorized as a long term capital gain. The cost basis information listed in boxes 3, 5 and 6a will not be reported to the IRS. This information can be used as a guide to help determine your cost basis. Recipient s Name and ddress: JOHN Q PUBI JN Q PUBI JOINT TNNTS 99 MIN STRT HOMTOWN NY OMB No ORM 1099-B Proceeds rom Broker and Barter xchange Transactions RIPINT S IDNTIITION NUMBR or additional information, please call: G H I J K M N O Section 1: Short-Term Transactions for Which Basis Is Reported to the IRS; Report on orm 8949, Part I, with Box checked. (1a) (1b) (1e) (2a) (3) (4) (5) (6a) (13) State (15) Date of Sale Date of Quantity Sold Share Price Sales Price ost or Other ederal Income Wash Sale oss heck if a / State Income or xchange cquisition (less commissions) Basis Tax Withheld Disallowed Noncovered (14) State ID Tax Withheld Security Number (8) Description (Payer s Name) Payer s ederal ID Number USIP Number (1d) Stock or Other Symbol und & ccount Number M INTRNTION QUITY UND TIKR /07/ /31/2012 2, $17.67 $42, M / $2, (8) Description (Payer s Name) Payer s ederal ID Number USIP Number (1d) Stock or Other Symbol und & ccount Number M TRUSTS UND TIKR /07/ /31/2012 1, $36.37 $44, M / $2, (8) Description (Payer s Name) Payer s ederal ID Number USIP Number (1d) Stock or Other Symbol und & ccount Number M TX XMPT INOM UND TIKR /07/ /31/2012 4, $10.84 $45, M / $2, Your Taxpayer Identification Number; this information may or may not be masked B The und s name The und s ederal Taxpayer Identification Number D Your und and account number B Section 5: Transactions for Which Basis Is Not Reported to the IRS and for Which Short- or ong-term Determination is Unknown. If information is reported in this section, there is not enough information available to determine the cost basis for your redemption or exchange. Please consult your tax advisor for advice on the cost basis information needed for orm 8949 and Schedule D. Date of each transaction made during the year Date shares were purchased or Various if multiple purchase dates G Number of shares redeemed H NV or price per share redeemed for each transaction I Gross proceeds (less commissions) from each transaction made during the year J Shows the cost or other basis of securities sold K mount of federal taxes withheld if you were subject to backup withholding ORRTD (if checked) The information on your orm 1099-B is reported to the IRS with the exception of cost basis information that may be displayed within Section 2 and Section 4. D mount of sales price that is disallowed due to purchase and redemption within 30 days M This will be checked if shares were acquired prior to January 1, 2012 N Shows State and State Identification number (state where state taxes were withheld from) O mount of state taxes withheld if you were subject to backup withholding 4 5

5 2013 orm 8949 orm Sales and Other Dispositions of apital ssets Please note that the IRS has made significant changes to the method in which capital gains and losses are reported. In past years, capital gains and losses were reported on Schedule D, orm 1040 (apital Gains and osses). Information reported to you on orm 1099-B will need to be entered on orm 8949 (Sales and Other Dispositions of apital ssets). apital gain distributions paid by your mutual funds that are reported on orm 1099-DIV will continue to be entered directly on Schedule D. orm 8949 is used to report capital gains and losses that may have resulted from the sale or exchange of your mutual fund shares in You will receive orm 1099-B if you sold or exchanged shares in your non-money market or non-retirement mutual fund account. The IRS considers an exchange of shares to be the same as a sale of shares. s noted in the sample at right, enter the information from your orm 1099-B in the appropriate areas of orm Part I of the form is for short-term gains or losses and Part II is for long-term gains or losses. ach sale must be reported separately. Once orm 8949 has been prepared for your mutual fund investments, the total short-term capital gains and losses and the total long-term capital gains and losses generally must be entered in the appropriate boxes on Schedule D. or additional information about completing orm 8949 or Schedule D, please review the orm 8949 or Schedule D instructions issued by the IRS or consult your tax advisor Department of the Treasury Internal Revenue Service Name(s) shown on return Sales and Other Dispositions of apital ssets Information about orm 8949 and its separate instructions is at ile with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D. OMB No ttachment Sequence No. 12 Social security number or taxpayer identification number Most brokers issue their own substitute statement instead of using orm 1099-B. They also may provide basis information (usually your cost) to you on the statement even if it is not reported to the IRS. Before you check Box, B, or below, determine whether you received any statement(s) and, if so, the transactions for which basis was reported to the IRS. Brokers are required to report basis to the IRS for most stock you bought in 2011 or later. Part I Short-Term. Transactions involving capital assets you held one year or less are short term. or long-term transactions, see page 2. Note. You may aggregate all short-term transactions reported on orm(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. nter the total directly on Schedule D, line 1a; you are not required to report these transactions on orm 8949 (see instructions). You must check Box, B, or below. heck only one box. If more than one box applies for your short-term transactions, complete a separate orm 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. () Short-term transactions reported on orm(s) 1099-B showing basis was reported to the IRS (see Note above) (B) Short-term transactions reported on orm(s) 1099-B, showing basis was not reported to the IRS () Short-term transactions not reported to you on orm 1099-B djustment, if any, to gain or loss. 1 (e) If you enter an amount in column (g), (h) (c) (d) ost or other basis. enter a code in column (f). Gain or (loss). (a) (b) Date sold or Proceeds See the Note below See the separate instructions. Subtract column (e) Description of property Date acquired disposed (sales price) and see olumn (e) from column (d) and (xample: 100 sh. XYZ o.) (Mo., day, yr.) (Mo., day, yr.) (see instructions) in the separate (f) (g) combine the result instructions ode(s) from mount of with column (g) instructions adjustment olumn (a) nter your und name and the number of shares sold or exchanged B olumn (b) nter the trade date you acquired your shares; use various for shares purchased on multiple dates olumn (c) nter the trade date you sold or exchanged your shares (orm 1099-B, Box 1a) B D G H D olumn (d) nter the amount of your cash proceeds (orm B, Box 2a) olumn (e) nter your cost basis olumn (f) In order to explain any adjustment to gain or loss in column (g), put the appropriate code in column (f) G olumn (g) nter in this column any necessary adjustments to gain or loss. nter negative amounts in parentheses. lso enter a code in column (f) to explain your adjustment H olumn (h) Gain or loss. Subtract column (e) from column (d) and combine the result with column (g). nter the gain or loss in column (h). nter negative amounts in parenthesis. 6 7

6 2013 orm 1099-R Distributions from Retirement Plans orm 1099-R reports both full and partial distributions from your mutual fund retirement plan accounts. If you have more than one retirement plan account with a taxable distribution in our family of mutual funds, you will receive one consolidated orm 1099-R. If you have more than one type of retirement account with us for example, a Traditional IR and a Roth IR separate orms 1099-R will be produced for distributions from each type of retirement account. Please note that we do not report distributions from retirement accounts held by other custodians. You will receive a orm 1099-R if you withdrew assets from your retirement plan account, even if you rolled them over and reinvested them in another retirement plan account within 60 days. You will also receive a orm 1099-R if you took your retirement account dividend distributions in cash, but not if they are reinvested into your retirement account. If you took more than one distribution from your retirement account in 2013, the distributions have been aggregated according to the type of distribution as defined by the IRS distribution code. You will receive a orm 1099-R if you converted your traditional IR to a Roth IR in You will not receive a orm 1099-R if you arranged to move your IR account as a trustee-to-trustee transfer of assets directly to another IR account without taking possession of the funds. You will receive a year-end statement in January 2014 that reports the value of your account as of December 31, Please consult your tax advisor for guidance on reporting the information from orm 1099-R on your tax return. M MIY O UNDS P.O. BOX 9999 ITY NM ST ORRTD (if checked) Recipient s Name and ddress: HV001 M TRUST O UST IR BO JOHN Q PUBI 1234 STRT NM HOMTOWN ST Payer s Name M HIGH INOM UND-SS 1. Gross Distribution 7. Distribution ode(s) 7 $1, The und s mailing address B ccount registration and address 2a. Taxable mount 2b. Taxable mount Not Determined IR / SP / SIMP X Payer s Name M GOB INOM SS Your Taxpayer Identification Number; this information may or may not be masked D The und s name B G D The und s ederal Taxpayer Identification Number Your und and account number G Total dollar amount of the distribution(s) from your retirement account in 2013 H Taxable amount of your distribution(s) H X 10. mount llocable to IRR within 5 Years Payer s ederal ID Number Total Distribution 11. 1st Year of Designated Roth ontribution Payer s ederal ID Number I n x here indicates your unds are unable to determine the taxable amount of your distribution(s) J n x here indicates a total distribution of account assets as of 12/31/2013 (There is no share balance left) K mount of ederal taxes withheld from the distribution I The portion that is your basis in a designated Roth account or additional information, please call: ORM 1099-R Distributions from Pensions, nnuities, Retirement or Profit-Sharing Plans, IRs, Insurance ontracts, etc. opy B RIPINT S IDNTIITION NUMBR ederal Income Tax Withheld 12. State Tax Withheld M Distribution codes identify the type of distribution(s) you received ( complete list of distribution codes appears on the back of the form) und & ccount Number mployee / Designated Roth ontributions 13. State / Payer s State Number / und & ccount Number M N O P J Q K R N Indicates if your account is a Traditional, SP, or SIMP IR O mount allocable to IRR within 5 years P The 1st year you made a contribution to the designated Roth account Q mount of State taxes withheld from the distribution, if applicable R The state and state ID that taxes were paid to The information on your orm 1099-R is reported to the IRS. In some cases, a copy of orm 1099-R must be filed with your tax return. 8 9

7 2013 orm 5498 IR ontribution Information orm 5498 reports all contributions to IR accounts for tax year Since contributions can be made until pril 15, 2014 for 2013, your form will be mailed to you by May 31, The information is reported to the IRS, but you don t have to file it with your 2013 tax return. orm 5498 also reports the fair market value of your IR account as of December 31, This information may be reported to you on your year-end transaction history statement instead of orm 5498, since orm 5498 will not be generated if you did not make any contributions to your IR accounts. Note: direct trustee-to-trustee transfer will not generate a orm B G M MIY O UNDS P.O. BOX 2222 ITY NM ST ORRTD (if checked) Participant s Name and ddress: M TRUST O UST IR BO JOHN Q. PUBI 123 STRT NM HOMTOWN ST Issuer s Name M BUIDR UND-SS 1. IR ontributions 2. Rollover (other than amounts in boxes ontributions 2-4 and 8-10) $8, Plan Type IR D H Issuer s ederal ID Number Roth IR onversion mount or additional information, please call: ORM 5498 IR ONTRIBUTION INORMTION opy B for Participant PRTIIPNT S SOI SURITY NUMBR Recharacterized ontributions 8. SP ontributions 9. SIMP ontributions 10. Roth IR ontributions und & ccount Number air Market Value of ccount $ If hecked, Required Minimum Dist. for 2014 X K M N I O J P The und s mailing address B ccount registration and address Your Taxpayer Identification Number; this information may or may not be masked D The und s name The und s ederal Taxpayer Identification Number Your und and account number G Shows contributions to your traditional IR made in 2013 for 2013 and through pril 15, 2014 for 2013 H Shows any rollover made in 2013, including direct rollovers made to an IR I mount converted to a Roth IR J ontributions (plus earnings) recharacterized from one type of IR to another in 2013 K air market value of IR account on the last business day of 2013 (fair market value is determined by multiplying the number of shares in your accounts by the net asset values on the last business day of the year) The type of IR account M ontributions made to a SP IR in 2013 N ontributions made to a SIMP IR in 2013 O Shows contributions to your Roth IR made in 2013 for 2013 and through pril 15, 2014 for 2013 P n x here indicates you must take a required minimum distribution (RMD) for

8 nswers to ommonly sked Questions Q. Why are my tax-exempt dividend distributions being reported to the IRS?. Tax-exempt dividend distributions paid to you in 2013 are required to be reported on orm 1099-DIV, even though these distributions may be excludable from your gross income. You should also be aware that in some cases the calculation of a mutual fund s income distributions cannot be completed until the end of a fund s fiscal year. Occasionally, these year-end calculations result in reclassifying income distributions made during the year to a different type of income. One possible effect of income reclassification is that income originally thought to be 100% taxexempt may be reclassified as a type of income that is reported as dividend income. or this reason, the amount of taxexempt dividends reported in box 10 of orm 1099-DIV may be different than the amounts previously reported on your transaction confirmations or periodic statements. You should use only the amounts reported to you on orm 1099-DIV when preparing your income tax return. Q. I am taking periodic distributions from my retirement account that are part of a series of substantially equal periodic payments. How is this being reported to the IRS?. Under current IRS requirements and guidance for orm 1099-R, payments from a retirement account that are part of a series of substantially equal periodic payments are reportable using distribution code 1 (for shareholders under age 59 1/2) or distribution code 7 (for shareholders over age 59 1/2) in box 7 of orm 1099-R. Previously, these types of payments may have been reported to you and the IRS using distribution code 2. If you are under age 59 1/2 you should review the instructions for IRS orm 5329 to see if you qualify for an exception to the IRS s 10% additional tax that may be imposed in certain circumstances. Q. Does information on my tax forms get reported to the IRS?. Yes, tax reporting information is reported to the IRS using the appropriate forms. Generally, orms 1099-DIV, 1099-B, and 1099-R will be reported on or before March 31, orm 5498 will be reported on or before May 31, Q. What do I do if my Tax ID Number printed on the form is incorrect?. You can obtain orm W-9 online at or by calling your Investment Program s toll-free telephone number shown on your tax forms. Q. What is a capital gain?. There are two types of capital gains: apital Gain (Personal) results when an individual sells mutual fund shares for a profit and is the difference between an asset s purchase price and selling price. apital Gain Distribution (Portfolio) results when a net profit is made by the mutual fund in buying and selling portfolio holdings during a given year. The IRS considers capital gains distributions from a mutual fund as a taxable activity, even if the shareholder reinvests the proceeds back into the fund. Q. How are my IR contributions reported to the IRS?. If you are an IR shareholder, orm 5498 will be mailed to you under separate cover no later than May 31, Q. Will my conversion from a Traditional IR to a Roth IR affect my tax return?. Yes, converting from a Traditional IR to a Roth IR is reportable to the IRS. Please consult your tax advisor for assistance. Q. Why doesn t the income amounts on my orm 1099-DIV match the amounts on my year-end or quarterly statements?. Occasionally, mutual funds determine that income previously distributed to shareholders as one type of income may need to be reclassified into a different category of income for tax reporting purposes. or example, qualified dividend income is not segregated from non-qualified dividend income on your periodic statements, but it is correctly broken out in box 1b on your 2013 orm 1099-DIV. nother example is if a taxexempt dividend distribution must be reclassified as a taxable distribution. Q. Why did I not receive a orm INT for my tax-exempt securities?. Tax exempt dividend information previously supplied on the orm 1099-INT for tax exempt (Box 8) and lternative Minimum Tax (Box 9) is now being reported to the IRS on orm 1099-DIV box 10 &

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