2013 1099 Consolidated Reporting Statement Tax Guide

2013 1099 Consolidated Reporting Statement Tax Guide Dear Valued Client: The purpose of this guide is to assist you or your tax professional in preparing your 2013 Federal Income Tax Return.

IMPORTANT TAX INFORMATION The 2013 1099 and 2013 Widely Held Fixed Investment Trust (WHFIT) Tax Guides, which contain illustrated examples and explanations of tax statements you may receive, will now be available on the Disclosures page of our corporate site at http://lpl nancial.lpl.com/disclosure.htm. As LPL Financial does not provide tax advisory services, please share and consult with your tax professional before using the information contained in these guides for tax reporting purposes. Additional REMIC and/or Widely Held Mortgage Trust (WHMT) Statement May Be Pending: If there are securities listed below, then our records indicate you held Mortgage Backed Securities such as Collateralized Mortgage Obligations (CMO), Collateralized Debt Obligations (CDO), Real Estate Mortgage Investment Conduits (REMIC) or Widely Held Mortgage Trusts (WHMT) in 2013 with LPL Financial. Additional 1099s and related tax information will be mailed to you by March 17, 2014 in connection with these assets. As a reminder, if there are securities listed below, please do not complete your tax return until you have received this additional information from LPL Financial. The following assets are characterized as REMIC or WHMT securities and therefore will be re ected on the additional tax statement mailed by March 17, 2014: CUSIP Security Description CUSIP Security Description 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 2013 IRS 1099 CONSOLIDATED REPORTING STATEMENT CALIFORNIA FORM 592-B 2 RESIDENT AND NONRESIDENT WITHHOLDING TAX STATEMENT TOTALS FOR TAX YEAR 2013 State ID No.: 95-2834236 1. TOTAL INCOME SUBJECT TO BACKUP WITHHOLDING...............................$10,025.00 2. TOTAL BACKUP WITHHOLDING (RATE: 7%)........................................... $75.00 NON-FEDERALLY REPORTED ITEMS TOTALS FOR TAX YEAR 2013 1. MARGIN DEBIT INTEREST..................................................... $0.00 2. LONG TERM OID ON EXEMPT MUNI BONDS...................................... $0.00 3. BASIS ADJUSTMENTS........................................................ $0.00 4. RETURN OF CAPITAL OR PRINCIPAL............................................ $0.00 5. LONG TERM OID ON EXEMPT MUNI SUBJECT TO ALT. MIN. TAX...................... $0.00 6. MISC TAX, SHORTFALLS AND EXEMPT INCOME INVT EXPENSES.................... $0.00 7. MISC FEES AND EXPENSES INCL. MANAGED ACCOUNT FEES...................... $0.00 8. PARTNERSHIP (MLP)......................................................... $0.00 9. ACCRUED INTEREST PURCHASED............................................. $0.00 10. ACCRUED INTEREST PURCHASED EXEMPT...................................... $0.00 11. PURCHASES................................................................ $0.00 12. OPTIONS............................................PLEASE SEE OPTIONS SECTION 13. DIRECT BUSINESS MUTUAL FUND SALE TRADES................................. $0.00 2 Please note that due to California Franchise Tax Board requirements, California state backup withholding will be reported on both your California Form 592-B and your federal 1099 Consolidated Reporting statement. For instructions on Form 592-B, please visit: https://www.ftb.ca.gov/ forms/2014/14_592b.pdf * This may or may not be the correct gure to report on your income tax return. See instructions on the last page. FORM 1099-OID ORIGINAL ISSUE DISCOUNT OMB #1545-0117 TOTALS FOR TAX YEAR 2013 IRS BOX 1. ORIGINAL ISSUE DISCOUNT FOR 2013 *......................................... $0.00 2. OTHER PERIODIC INTEREST................................................... $0.00 3. EARLY WITHDRAWAL PENALTY................................................ $0.00 4. FEDERAL INCOME TAX WITHHELD............................................. $0.00 5. FOREIGN TAX PAID........................................................... $0.00 6. FOREIGN COUNTRY OR US POSSESSION.................................... VARIOUS 8. ORIGINAL ISSUE DISCOUNT ON U.S. TREASURY OBLIGATIONS *.................... $0.00 9. INVESTMENT EXPENSES...................................................... $0.00 10. STATE........................................................................ N/A 11. STATE IDENTIFICATION NO..................................................... $0.00 12. STATE TAX WITHHELD........................................................ $0.00 FORM 1099-B PROCEEDS FROM BROKER & BARTER EXCHANGES OMB #1545-0715 TOTALS FOR TAX YEAR 2013 IRS BOX 2A. GROSS PROCEEDS LESS COMMISSIONS AND OPTION PREMIUMS................ $8,278,377.91 3. COST OR OTHER BASIS........................................................ $22,500.00 4. FEDERAL INCOME TAX WITHHELD.............................................. $11,972.07 5. WASH SALE LOSS DISALLOWED.................................................. $800.00 9. PROFIT OR (LOSS) REALIZED IN 2013 ON CLOSED CONTRACTS........................ $500.00 10. UNREALIZED PROFIT OR (LOSS) ON OPEN CONTRACTS -- 12/31/2012................... $275.00 11. UNREALIZED PROFIT OR (LOSS) ON OPEN CONTRACTS -- 12/31/2013................... $350.00 12. AGGREGATE PROFIT OR (LOSS) ON CONTRACTS.................................... $400.00 13. STATE............................................................................. N/A 14. STATE IDENTIFICATION NO........................................................... N/A 15. STATE TAX WITHHELD........................................................... $400.00 Summary of Changes Customized to Fit Your Reporting Needs Regulatory New Boxes 1. Exempt-interest dividends from municipal bond funds have moved to Form 1099-DIV boxes 10 and 11 from Form 1099-INT. 2. A checkbox indicating whether basis is being reported to the IRS (Form 1099-B box 6b). 3. State backup withholding on all 1099 forms. New Rules for 2012 IRS Form 1099-B Average Cost for sales of mutual funds or other RICs y Will be reflected this year if you elected this basis method. Short Sales executed during 2012 y The trade date of the closing transaction will be reported under Date of Acquisition (box 1b), while the settlement date of the closing transaction will be reported under Date of Sale (box 1a). S-Corporations y Will be required to have sales of covered securities acquired on or after January 1, 2012, reported on IRS Form 1099-B. This will include reporting adjusted basis, as well as any wash sales when the purchase and sale transactions occur within the same account. y Are subject to backup withholding if an appropriate W-9 has not been provided to LPL Financial. Form Enhancements 1. Supplemental State Tax Information: For income received from municipal bond funds, this section will show what portion of the income is sourced from each state and from federal obligations such as U.S. Treasury Bills. This year, we have enhanced this to report by dollar amount rather than percentage. 2. Flexible Billing: For advisory fees charged to IRAs that are being paid through brokerage accounts, we will now report the IRA advisory fees on these brokerage account 1099s. 3. Summary of Revisions Box (for Revised 1099s only): This will now be moved to the first page to allow you to easily identify the Securities that have amended or reclassified their dividend information and are listed by CUSIP, security description, form and box number. 4. Option Premium: Ahead of the 2014 requirement to report sale of options and option premium information, we are adding option premium information directly to the 1099-B as an adjacent column to help you reconcile to the gain/loss amounts shown on your Form 1099-B or adjust the gain/loss calculations in columns (f) and (g) of your IRS Form 8949. 5. Principal distributions will show cost on the 1099-B: Due to LPL Financial defaulting to the accounting method of recognizing gain or loss when the position has been disposed, principal distributions paid by mortgage-backed securities were previously reported on Form 1099-B without any cost basis indicated. This year we are making our accounting method more clear by reflecting the appropriate cost and gain/loss on Form 1099-B. Should you elect a different accounting method, please consult with your tax professional to adjust your cost and gain/ loss calculations. These principal distributions will not be covered under the cost basis legislation until 2014. 2013 IRS 1099 CONSOLIDATED REPORTING STATEMENT FORM 1099-DIV DIVIDENDS AND DISTRIBUTIONS OMB #1545-0110 TOTALS FOR TAX YEAR 2013 IRS BOX 1A. TOTAL ORDINARY DIVIDENDS 1............................................. $90,065.01 1B. QUALIFIED DIVIDENDS.................................................... $24,401.45 2A. TOTAL CAPITAL GAIN DISTRIBUTIONS....................................... $30,427.88 2B. UNRECAP. SEC. 1250 GAIN..................................................... $0.00 2C. SECTION 1202 GAIN.......................................................... $0.00 2D. COLLECTIBLES (28%) GAIN.................................................... $0.00 3. NONDIVIDEND DISTRIBUTIONS............................................. $3,425.67 4. FEDERAL INCOME TAX WITHHELD............................................. $0.00 5. INVESTMENT EXPENSES...................................................... $0.00 6. FOREIGN TAX PAID........................................................... $0.00 7. FOREIGN COUNTRY OR U.S. POSSESSION................................... VARIOUS 8. CASH LIQUIDATION DISTRIBUTIONS........................................ $28,291.47 9. NONCASH LIQUIDATION DISTRIBUTIONS........................................ $0.00 10. EXEMPT-INTEREST DIVIDENDS................................................ $0.00 11. SPECIFIED PRIVATE ACTIVITY BOND INTEREST DIVIDENDS........................ $0.00 12. STATE........................................................................ N/A 13. STATE IDENTIFICATION NO....................................................... N/A 14. STATE TAX WITHHELD........................................................ $0.00 FORM 1099-MISC MISCELLANEOUS INCOME OMB #1545-0115 TOTALS FOR TAX YEAR 2013 IRS BOX 1. RENTS..................................................................... $0.00 2. ROYALTIES.................................................................. $0.00 3. OTHER INCOME............................................................. $0.00 4. FEDERAL INCOME TAX WITHHELD............................................. $0.00 8. SUBSTITUTE PAYMENTS IN LIEU OF DIVIDENDS OR INTEREST...................... $0.00 11. FOREIGN TAX PAID........................................................... $0.00 12. FOREIGN COUNTRY OR U.S. POSSESSION.................................... VARIOUS 16. STATE TAX WITHHELD........................................................ $0.00 17. STATE IDENTIFICATION NO....................................................... N/A FORM 1099-INT INTEREST INCOME OMB #1545-0112 TOTALS FOR TAX YEAR 2013 IRS BOX 1. INTEREST INCOME........................................................ $6,975.00 2. EARLY WITHDRAWAL PENALTY................................................ $0.00 3. INTEREST ON U.S. SAVINGS BONDS & TREAS. OBLIGATIONS.................... $1,591.72 4. FEDERAL INCOME TAX WITHHELD............................................. $0.00 5. INVESTMENT EXPENSES...................................................... $0.00 6. FOREIGN TAX PAID........................................................... $0.00 7. FOREIGN COUNTRY OR U.S. POSSESSION......................................... N/A 8. TAX-EXEMPT INTEREST..................................................... $801.24 9. SPECIFIED PRIVATE ACTIVITY BOND INTEREST................................ $314.81 10. TAX-EXEMPT BOND CUSIP NO.............................................. VARIOUS 11. STATE............................................................... SEE DETAILS 12. STATE IDENTIFICATION NO.............................................. SEE DETAILS 13. STATE TAX WITHHELD........................................................ $0.00 Federal or state tax withheld amounts represent backup withholding applied due to missing W-9 certi cation, an IRS B Notice or C Notice. 1 Per IRS 1099-DIV Instructions for Box 1A, includes net short-term capital gain distributions from mutual funds; Tax-exempt dividends are reported on 1099-DIV Box 10. Recipient s Tax Identi cation Number: 99-9999999 Courtesy Form Corrected on 02/20/12 Your Financial Advisor John Representative (999) 999-9999 Rep ID: 44FB 90 FP 1 B 1 1 A 10061 10061 **5 DGT INFORMATION LINE (OPTIONAL) JOHN A INVESTOR C/O LINE DELIVERY ADDRESS DELIVERY ADDRESS ANYTOWN ST 12345-1234 Department of the Treasury - Internal Revenue Service (keep for your records) This statement is being provided for your information only and generally will not be furnished to the Internal Revenue Service. However, this reporting exemption does not apply for any payments listed in 1099-MISC Box 8 and any tax credit bonds listed on Form 1099-INT. If you are required to le a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 1 2 3 ENV* Document Samples designed and produced by DST Output using Digital Press Technology PROPRIETARY AND CONFIDENTIAL: Not to be disclosed to third parties or used for other than recipient s own internal purpose. The statement appearance will differ from this Conceptual Design based on paper and DST Output production line. Image(s): Copyright 2011 Shutterstock, Inc. & Jupiterimages Corporation. Copy B For Recipient LPL Financial Member FINRA / SIPC 4707 Executive Drive San Diego, CA 92121 Federal ID No: 95-2834236 2 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

About This Guide This guide contains illustrated examples and explanations of statements that you may receive depending on the type of reportable income you have in your account(s) held at LPL Financial. This guide is provided for informational purposes only and is compiled from reliable sources, but is not guaranteed. LPL Financial does not provide tax advisory services. It is recommended that you consult with your tax advisor or accountant before using this information for tax reporting purposes. Standard IRS instructions for each form are available on the last pages of your tax statement. Your 1099 Consolidated Reporting Statement includes information on those securities held in your LPL Financial account. All taxable dividends, interest and Original Issue Discount (OID) reflected on this form should be reported on your tax return using LPL Financial as the payor rather than the individual companies that paid the dividends or interest. While using this information to prepare your tax return, keep in mind that the IRS uses a matching system whereby it matches the items reported on your 1099 Consolidated Reporting Statement with the items you report on your tax return. In general, you should report all amounts shown on your 1099 Consolidated Reporting Statement and then make adjustments, if necessary. Additionally, in an effort to minimize the risk of identity theft, LPL Financial will display only the last four digits of your individual taxpayer identification number (TIN) on your 1099 Consolidated Reporting Statement. This will only apply to the Form 1099 and 5498 series, and will not apply to business employer identification numbers (EINs). Due to the new tax law changes explained in this booklet, a glossary is available in the back to help clarify new terms referenced. Special Notice: Income Reclassification and Delayed Reporting Although we provide our most up-to-date information on your 1099 Consolidated Reporting Statement, income distributions may be reclassified after the 1099 Consolidated Reporting Statement has been mailed to you. A common example occurs when a payment originally classified as a dividend is later reclassified by the issuer as a capital gains payment. If there is a reclassification or change, we will send you a corrected 1099 Consolidated Reporting Statement after we receive the new information. RICs (which include mutual funds and closed-end investment funds), REITs, unit investment trusts (UITs), utilities and foreign companies are among the issuers that sometimes change the nature of their distributions. A list of securities will display on the first summary page, showing which securities caused a revision, and which IRS form(s) and box(es) were impacted. In addition, the issuers of certain debt securities, including Collateralized Mortgage Obligations (CMOs), Collateralized Debt Obligations (CDOs), Real Estate Mortgage Investment Conduits (REMICs) and Widely Held Mortgage Trusts (WHMTs) may not advise us of the final status of their payment until as late as March 2014. If you held a CMO, CDO, REMIC and/or WHMT in 2013, your enclosed 1099 Consolidated Reporting Statement is incomplete. You will receive one or more additional tax statements from LPL Financial detailing the taxable information for these assets. If you held these types of investments, please do not file your tax return until you receive this additional statement(s). Federal and State Backup Withholding LPL Financial is required by law to withhold federal (and wherever applicable, state) income tax from all reportable dividends, interest and gross proceeds paid to certain U.S. persons (including trusts, partnerships, etc.) who fail to furnish a valid taxpayer identification number (TIN) or appropriate certification (IRS Form W-9), whom we have been notified by the IRS has an incorrect name or TIN, or an under-reporting of dividend or interest income. This is known as Backup Withholding. Federal income tax is generally reported in Box 4 of all 1099-DIV, -INT, -B, -MISC, and OID sections. State income tax withheld is also reported on all 1099 forms. Include these amounts on your income tax return as tax withheld. 3

Recent IRS Regulatory Changes Cost-Basis Reporting Overview Background In one of several strategies to close the $345 billion tax gap identified by the United States Government Accountability Office (GAO) in 2001, Section 403 of the Energy Improvement and Extension Act of 2008 amended Internal Revenue Code Section 6045 to mandate that every broker additionally report a customer s adjusted basis and holding period when reporting a customer s sale of a covered security. A covered security is a security subject to the basis reporting requirements if it is acquired after its effective date. Covered securities are exclusive to securities acquired for cash. Using a three-year phase-in approach since January 1, 2011, cost basis reporting is required for: Effective Date Phase 1: January 1, 2011 Covered Securities Equities, exchange-traded funds (ETFs), exchange-traded notes (ETNs), and real estate investment trusts (REITs) purchased on or after 2011 Unit investment trusts (UITs) structured as regulated investment companies (RICs) Stock acquired through the exercise of rights distributed by an issuer y If an accounting method was not elected and you have sold less than your entire position in the security, brokers must report your adjusted basis using the default method of first-in, first-out (FIFO). When the custody of specified securities transfers to another broker, the delivering broker must furnish a transfer statement to the receiving broker, within 15 days after settlement, containing sufficient information to determine your adjusted basis and holding period. Issuers of securities (such as equity issuers, mutual fund sponsors, etc.) must report to you and the IRS if a corporate action affects the basis of your security. Form 2439, which reports your Undistributed Long- Term Capital Gains retained by an RIC or REIT, is considered an issuer s return, and the effects of the amounts reported on this return should be taken into account when calculating your adjusted basis for the year the security is covered. The Act also gives brokers until February 15 of the following year to furnish the 1099 Consolidated Reporting statement to you. Note: Please be advised that due to the cost-basis legislation described above and in the pages to follow, the number of revised 1099s is expected to rise significantly as basis information is changed or updated. Phase 2: January 1, 2012 Phase 3: January 1, 2014 Regulated investment companies and dividend reinvestment plans (DRPs) purchased in 2012 Equities transferred to a DRP in 2012 Fixed Income Debt Instruments, Options and Other Securities purchased in 2014 Securities not covered: Restricted stock granted by an employer (because this is not acquired for cash). Stock acquired in 2011 is no longer a covered security if it is transferred to a DRP in 2011, but remains a covered security if transferred to a DRP after 2011. In addition: Brokers must report your adjusted basis using your elected accounting method. 4 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

How Do the Rules Impact Your 1099-B? 1099-B DETAILS - PROCEEDS FROM SALE TRADES OR EXCHANGES AND TAX WITHHELD The proceeds stated on this page are reported net of option premiums. However, option premiums are built into the gain or loss amounts computed below. If you have securities sold because of the exercise of an option granted or acquired before 2014, we have included option premium information as a separate column on this page, to help you reconcile to the gain/loss amount shown on this statement. Should you elect to report net of option premiums, you must adjust your gain/loss amounts on your Form 8949. GROSS PROCEEDS WASH SALE DATE OF (LESS COMMISSIONS AMOUNT WASH SALE COLLECTIBLES SALE OR AND OPTION ADJUSTMENT LOSS ALLOCATION DATE OF COST OR OPTION 2 3 4 SECURITY DESCRIPTION CUSIP ACQUISITION EXCHANGE PREMIUMS) OTHER BASIS GAIN OR (LOSS) PREMIUM TO BASIS DISALLOWED FACTOR (CAF) (BOX 8) (BOX 1D) (BOX 1B) (BOX 1A) (BOX 2A) (BOX 3) (BOX 5) SHORT-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD ONE YEAR OR LESS (BOX 1C) COVERED (BOX 6B): FORM 8949 (BOX A) WITH BASIS REPORTED TO THE IRS UCB B93562120 1/5/2011 12/21/11 23,089.70 20,000.00 3,089.70 250.00 0.00 0.00 QTY (BOX 1E): 140.000 250.00 BERKSHIRE HATHAWAY INC 084670108 03/11/11 05/10/10 1,234,926.83 1,050,000.00 184,926.83 0.00 0.00 0.00 QTY (BOX 1E): 20.000 WAL-MART STORES INC 931142103 1/08/11 11/30/11 284,550.00 296,700.00 (12,150.00) 0.00 0.00 12,150.00) TOTAL SHORT-TERM COVERED 1,260,516.53 1,071,000.00 189,516.53 250.00 0.00 (12,150.00) NON-COVERED 1 (BOX 6A): FORM 8949 (BOX B) WITH BASIS NOT REPORTED TO THE IRS ANHEUSER BUSCH INBEV SA B6399C107 07/08/10 07/08/11 115,604.44 100,000.00 15,604.44 0.00 0.00 0.00 QTY (BOX 1E): 500.000 VANGUARD INTL GRTH INVS 921910204 01/05/11 05/29/11 50,000.00 45,000.00 5,000.00 0.00 0.00 0.00 QTY (BOX 1E): 2000.000 VANGRD HI YLD CORP INVS 922031208 01/04/11 11/17/11 7,895.00 8,000.00 (105.00) 0.00 0.00 0.00 QTY (BOX 1E): 500.000 XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 4,000.00 (37,850.00) QTY (BOX 1E): 500.000 TOTAL SHORT-TERM NON-COVERED 173,499.44 153,000.00 20,499.44 0.00 4,000.00 (37,850.00) LONG-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD MORE THAN ONE YEAR (BOX 1C) COVERED (BOX 6B): FORM 8949 WITH BASIS REPORTED TO THE IRS FT INFLTN HEDGE 2 FE RE 30273E585 09/28/11 24,538.94 2,540.00 21,998.94 0.00 0.00 0.00 QTY (BOX 1E): 2540.000 XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 0.00 (37,850.00) QTY (BOX 1E): 500.000 TOTAL LONG-TERM COVERED 24,538.94 2,540.00 21,998.94 0.00 0.00 (37,850.00) 1 These securities are not covered under the 1st and 2nd phases of the Cost Basis accounting legislations passed by Congress on October 3, 2008. Therefore the cost basis, acquisition date, disallowed loss from wash sales, and holding period are not being reported to the IRS for these securities. Please refer to the 2013 1099 Tax Guide online for more information on covered securities. 2 Please note that the amount displayed in this column is included in the amount listed in the Cost Or Other Basis column. If there is a wash sale adjustment amount displayed, your holding period includes the holding period of the stock or securities that were previously sold, where the loss deduction was postponed or disallowed. 3 The amounts listed in this column represent the losses you incurred from wash sales that cannot be deducted from your tax return. 4 Collectibles Allocation Factor (CAF): Represents the percentage of proceeds associated with UIT grantor trusts you sold in 2013 that contain assets considered collectibles, which is subject to a higher long-term capital gains rate of 28%, when units held over 1 year are disposed. Please refer to the 2013 WHFIT Guide online for details. Additional Boxes For sale transactions, your 1099-B will include the date you purchased the security, your adjusted basis (which accounts for return of capital distributions, corporate actions, reinvestments, etc.), any losses disallowed from a wash sale activity, whether the securities sold are covered or not covered by the cost-basis legislation, whether the costbasis information will be reported to the IRS, and whether the gain or loss you recognized is short-term or long-term. While we are providing you full disclosure of all covered and non-covered transactions, the IRS requires us to furnish information to them on only covered transactions. Forms Brokers Have to File per Each Transaction Previously, the IRS required each sale transaction reported in the 1099-B section of your 1099 Consolidated Reporting Statement to be treated as a separate 1099-B form. Under the new legislation, the IRS now requires that each of the sales described below be reported on a separate 1099-B form, even if all three types were sold in a single sale transaction: Covered securities with short-term gain or loss Covered securities with long-term gain or loss Non-covered securities (basis and gain or loss information not required) As a result, LPL Financial will display your sale transactions in a rolled-up format, where your sale trades will be broken out and subtotaled by: Covered securities with short-term gain or loss Covered securities with long-term gain or loss Non-covered securities with short-term gain or loss Non-covered securities with long-term gain or loss Securities with Unknown Basis or Holding Period Each category listed above will be reported to the IRS as a separate 1099-B form, with the exception of non-covered securities, where we will continue to only report gross proceeds to the IRS. For a single sale transaction comprised of blocks of shares with multiple acquisition dates, Various will display in the Date Acquired column, and the same will be reported to the IRS. Short Sales Under the same amendments to Section 6045, the IRS requires brokers to report sales of securities opened on or after January 1, 2011, for the year the short sale is closed. Therefore, LPL Financial will not report short sales opened in 2013 for calendar year 2013 if the short sale remains open on January 1, 2014. If the short sale is opened in 2013 and is closed in 2014, LPL Financial will report the short sale for calendar year 2014. 5

On your 1099-B form, the following will be reported for each security sold to open the short sale: Box 1a The settlement date of when the security was delivered to close the short sale Box 1b The trade date of when the security was delivered to close the short sale Box 3 The adjusted basis of the security delivered to close the short sale Box 1c Whether the short sale is short-term or long-term based on the date listed in Box 1b Each short sale will generally be reported as a single 1099- B transaction. However, if the short sale falls into any of the scenarios outlined below, LPL Financial will follow the five-category convention listed earlier and report up to three 1099-Bs to the IRS per short sale. There is both short-term and long-term gain or loss reported for the short sale The securities delivered to close the short sale include both covered and noncovered securities In addition, if backup withholding was taken from the gross proceeds when a short sale was opened in 2013, but not closed in 2013, there will be a separation in the reporting of withholding and proceeds. The withholding will be reported for 2013, but the actual short sale will be reported for the year it is closed. As a general rule, you determine whether you have short-term or long-term gain or loss on a short sale by the amount of time you actually hold the security eventually purchased and delivered back to the broker to close the short sale. Please refer to the Short-Term or Long-Term Capital Gain or Loss section of IRS Publication 550 for more information. Wash Sales You cannot deduct losses from sales or trades of stock or securities in a wash sale. The IRS requires that LPL Financial report on your 1099-B any losses disallowed under section 1091 (wash sales) only if both the sale and purchase transactions occur in the same account with respect to covered securities with the same CUSIP number. However, you as the taxpayer must still adhere to the wash sale rules whether the sale and purchase transactions occur in the same or different accounts. LPL Financial will add the disallowed loss amount to your basis of the acquired securities for future basis tracking. This adjustment postpones the loss deduction until you sell the new securities. Your holding period for the new securities includes the holding period of the securities previously sold. Transferred Securities For transferred securities to LPL Financial in 2013, if a complete transfer statement is not furnished, LPL Financial will treat the security as non-covered. However, we will file a corrected 1099-B within 30 days of receiving a transfer statement indicating that the security is a covered security. However, we do not have to file a corrected 1099-B if LPL Financial receives the transfer statement more than three years after we filed the original 1099-B. Corporate Actions Previously, if you held stock that underwent a reportable change in control or capital structure such as a merger, reorganization or similar event, the IRS required brokers to report the aggregate amount of cash and the fair market value of any stock or other property you received in Box 2 of your 1099-B as gross proceeds. Now, under section 6045(g), different requirements apply to partially taxable mergers, also known as no loss mergers. For partially taxable mergers, where a loss cannot be recognized, if you received both cash (also known as boot ) and stock, the IRS requires LPL Financial to report only the difference between the fair market value of your new shares and the original purchase cost of your old shares as your adjusted basis in Box 3. Only the cash boot will then be reported in Box 2. Example. Kyle buys 100 shares of covered stock in ABC Corporation for $5,000 in February. ABC Corporation merges with DEF Corporation in December. The merger is taxable only to the extent that boot is received. Fred receives 100 shares of DEF stock with a value of $4,700 and $800 cash boot in exchange for his ABC stock. Kyle s resulting basis in the DEF stock is $4,700. Report the $800 cash boot in Box 2, and report $300 in Box 3 to reflect the net reduction in basis from $5,000 (for the ABC stock) to $4,700 (for the DEF stock). For fully taxable mergers (where you may recognize a gain or a loss), the reporting requirement has not changed and your proceeds will include both the cash boot and the fair market value of the new shares you received. Securities acquired through corporate actions such as a stock dividend, stock split, reorganization, redemption, stock conversion, recapitalization, corporate division or other similar action are considered a covered security if the basis of the acquired security is determined from the basis of a covered security. 6 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

Average Cost Rules The basis reporting regulations rule how you determine the average basis of mutual fund shares: If you elect to average the basis of mutual fund shares, you are required to compute separate averages for fund shares held in different accounts. You are permitted to average the basis of mutual fund shares in one account, and not average them in another account. Bifurcation: You are required to compute a separate average for fund shares in an account that are covered securities and a separate average for fund shares in an account that are not covered securities. Prior to 2012, the regulations had stipulated that an average basis election must be applied to all shares of a particular mutual fund in all accounts in which you hold the fund. S Corps Previously, brokers were not required to report the sale of securities owned by S Corporations or C Corporations. The basis reporting rules now require brokers to report sales of covered securities that S corporations acquire on or after January 1, 2012. This includes reporting the adjusted basis for corporate mergers, as well as any wash sales when the purchase and sale transactions occur in the same account. S Corporations are also subject to backup withholding if they have not certified their W-9 requirement. Since this rule applies only to S Corporations, if you are a C Corporation, you must notify LPL Financial immediately if you have not done so already, by submitting an IRS Form W-9 indicating such, or LPL Financial will be required to classify you as an S Corporation by default. Because brokers generally cannot determine from name alone whether you are an S corporation or C corporation, a broker is not permitted to make a determination about corporate status for the sale reporting exemption. If you are an LLC, you may need to check with your tax professional whether you are filing as a partnership, a single-member LLC, an S Corporation or C Corporation, to determine whether the rules apply to you. S Corporations are also subject to the wash sale rules, and losses disallowed from wash sales are reported on the 2013 1099-B in 2014. Corporations and partnerships will also have to use IRS Form 8949 if they have to be reported on a 2013 Schedule D or Schedule D-1 form. What to Expect for 2014: IRS regulations require all broker/dealers to report costbasis information on debt obligations and options acquired on or after January 1, 2014, to you and the IRS on Form 1099-B. This reporting obligation is effective on January 1, 2014, and will be reflected on any applicable Form 1099-B you will receive in early 2015. Scope of Debt Instrument Reporting and Phased Implementation Based on the final regulations released on April 18, 2013, the IRS has agreed to install a phased approach between 2014 and 2017, where the scope of debt instruments for 2014 taxyear basis reporting is limited to debt instruments with less complex features and includes the following: Debt instruments that provide for a single fixed payment schedule for which yield and maturity can be determined for the instrument under 1.1272-1(b). Debt instruments that provide for alternate payment schedules for which yield and maturity can be determined for the instrument under 1.1272-1(c) (such as a debt instrument with an embedded put or call option). A demand loan for which yield can be determined under 1.1272-1(d). For debt instruments with a fixed yield and fixed maturity date, and for more complex debt instruments that do not have a fixed yield and fixed maturity date, basis reporting will begin on January 1, 2016 for these debt instruments acquired on or after January 1, 2016. These include but are not limited to: Do Not Have Fixed Yield and Fixed Maturity Contingent-payment debt instrument Variable rate debt instrument Inflation-indexed debt instrument Have Fixed Yield and Fixed Maturity Debt instrument that provides for more than one rate of stated interest (such as a debt instrument with stepped interest rates) Convertible debt instrument Stripped bond or coupon Debt instrument that requires payment of either interest or principal in non-usd currencies Certain tax credit bonds Debt instrument that provides for a PIK feature Debt instrument issued by a non-u.s. issuer Debt instrument for which the terms of the instrument are not reasonably available to the broker within 90 days of acquisition Debt instrument that is issued as part of an investment unit Debt instrument evidenced by a physical certificate 7

(whether directly or through a nominee, agent or subsidiary) unless the certificate is held by a securities depository or clearing organization described in 1.1471-1(b)(18). Exempt from Basis Reporting: Debt instrument with principal subject to acceleration Short-term debt instruments Transfer Reporting In addition, the final regulations provide that transfer reporting for debt instruments, options and securities futures contracts will be applicable no earlier than January 1, 2015. Transfer reporting for more complex debt instruments will apply to transfers occurring on or after January 1, 2017. See 1.6045A-1(d). Support for Taxpayer Election Should you provide LPL Financial written instructions, we must also take into account the following elections for basis reporting purposes: To accrue market discount using a constant yield To include market discount in income currently To treat all interest as OID The spot rate election for interest accruals with respect to a covered debt instrument denominated in a currency other than in USD LPL Financial must also amortize bond premium on taxable bonds when reporting basis, which offsets interest income on the bond, unless we receive a notice from your client instructing otherwise. Options The scope provisions in the final regulations are generally the same as laid out in the proposed regulations, except compensatory options (employee stock options) are excluded, where brokers are not permitted to adjust basis to account for the exercise of a compensatory option that is granted or acquired on or after January 1, 2014. It is important that you consider any tax implications when placing debt obligations and option trades in their account. If you direct your financial representative to sell or exercise any of these assets, LPL Financial will execute by default on a first-in, first-out basis (FIFO). For example, the oldest shares you acquired will be depleted first and used to calculate any gain or loss on the transaction. Alternatively, you may specify particular shares to be depleted; however, this decision must be communicated to your financial representative on or before the trade settlement date. For more information regarding the new regulations, you may access it at http://www.irs.gov/irb/2013-20_irb/ar07. html. For tax advice, please contact a tax professional. Other 2013 Reporting State Reporting: Since January 1, 2011, the California Franchise Tax Board (CA FTB) has required brokers who remit backup withholding to the IRS, additionally to withhold 7% on: Proceeds from broker and barter exchange transactions (1099-B Box 2) Substitute payments in lieu of dividends or interest (1099-MISC Box 8) Capital gain distributions from RICs or REITs (1099-DIV Box 2a) Brokers also are required to remit to the FTB for accounts with missing TIN, invalid TIN or who fail to certify exemption from backup withholding. California residents are subject to California backup withholding on payments from California and non-california sources. If California state backup withholding was applied to your account, the total tax payment will be reported to you not only on your 1099s, but also on Form CA 592-B, located on the second summary page of your 1099 Consolidated Reporting Statement. The individual state withholding transactions that aggregate to the totals listed on Form 592-B are found throughout the 1099 detailed sections, which show from which payments the withholding was taken from. Similarly, Maine also requires LPL Financial to withhold 5% of reportable income and remit to the state for similar reasons. If Maine state backup withholding was applied to your account, the total tax payment will appear on your second summary page, followed by details throughout your 1099 Consolidated Reporting Statement. Please note that original and corrected 1099 information transmitted to the IRS will continue to be forwarded by the IRS to states that participate in the Combined Federal/State Filing (CF/SF) Program. While New York no longer requires a 1099, other states still do. These information returns include 1099-DIV, INT, MISC, OID, R and 5498. State Backup Withholding The IRS now includes the reporting of state backup withholding across all 1099 forms. Recent Foreign Regulatory Changes: Foreign Account Tax Compliance Act (FATCA) Reporting of Foreign Financial Assets If you held specified foreign financial assets, such as foreign stock or other securities issued by a foreign source, with an aggregate value exceeding $50,000 in 2013, you will need to report information about those assets on new IRS Form 8 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

8938, which must be attached to your 2013 income tax return. Higher reporting thresholds apply if you file a joint tax return or if you reside outside the United States. This does not apply to foreign securities you custody at LPL Financial, but this information may be pertinent to you if you hold these specified securities outside of your account. Filing Form 8938 will not relieve you of the requirement to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), if you are otherwise required to file Form TD F90-22.1. For more information, please contact your tax professional. Canada Revenue Agency Mandatory 25% Withholding Effective 2013 If you are invested in Canadian securities, the Canada Revenue Agency (CRA) requires you to certify beneficial ownership, residency and eligibility for treaty benefits, by completing any of the declaration forms listed below, to claim a reduced treaty rate on withholding applied to Canadian source investment income. If these forms are not received before the record date of income payment, the default rate of 25% will apply Form Description Account Type NR301 NR302 NR303 Declaration of eligibility for benefits under a tax treaty for a non-resident taxpayer Declaration of eligibility for benefits under a tax treaty for a partnership with non-resident partners Declaration of eligibility for benefits under a tax treaty for a hybrid entity Individual, joint, trust, IRAs and QRPs, estate, corporation, 529 plan Partnership Hybrid business entities i.e., limited liability corporations (LLCs), disregarded entities, etc. These forms can be accessed at: http://www.cra-arc. gc.ca/menu/afaf_n-e.html, and you may need to consult with your tax professional to determine which form is most appropriate. Important Changes That Took Place in 2013 In 2013, the American Taxpayer Relief Act of 2012 (the Act ) permanently extended the 10%, 15%, 25%, 28%, 33% and 35% rates on income at or below $400,000 (individual filers); $425,000 (heads of households) and $450,000 (married filing jointly) for taxable years beginning after December 31, 2012. Taxpayers that exceed these income thresholds are subject to a higher marginal tax rate of 39.6% on that income. As a result, here are the 1040 tax-rate schedules you can expect to see for the 2013 tax year for each filing status: Single Married Filing Jointly/ Qualified Widower Married Filing Separately Head of Household Income Thresholds Tax Rate Income Thresholds Tax Rate Income Thresholds Tax Rate Income Thresholds Tax Rate $1 $8,925 10% $1 $17,850 10% $1 $8,925 10% $1 $12,750 10% $8,926 $36,250 15% $17,851 $72,500 15% $8,926 $36,250 15% $12,751 $48,600 15% $36,251 $87,850 25% $72,501 $146,400 25% $36,251 $73,200 25% $48,601 $125,450 25% $87,851 $183,250 28% $146,401 $223,050 28% $73,201 $111,525 28% $125,451 $203,150 28% $183,251 $398,350 33% $223,051 $398,350 33% $111,526 $199,175 33% $203,151 $398,350 33% $398,351 $400,000 35% $398,351 $450,000 35% $199,175 $225,000 35% $398,351 $425,000 35% $400,000. 39.6% $450,001. 39.6% $225,000. 39.6% $425,001. 39.6% Qualified dividends and capital-gain distributions from RICs or REITs will permanently continue at the tax rates and income tax brackets listed below: 1040 Income Tax Bracket Tax Rates for Qualified Dividends and Capital-Gain Distributions from RICs or REITs 10% 15% 0% 25% 35% 15% 39.6% 20% 9

Important Changes That Took Place in 2013 (continued) Net Investment Income Tax. Beginning in 2013, you may be subject to a Net Investment Income Tax (NIIT). The NIIT is 3.8% of the smaller of (a) your net investment income, or (b) the excess of your modified adjusted gross income over: y $125,000 if married filing separately y $250,000 if married filing jointly or qualifying widow(er) y $200,000 if single or head of household For more information, see the instructions for line 60 and Form 8960. Personal exemption amount increased for certain taxpayers. Your personal exemption is increased to $3,900. But the amount is reduced if your adjusted gross income is more than: y $150,000 if married filing separately y $250,000 if single y $275,000 if head of household y $300,000 if married filing jointly or qualifying widow(er) See the instructions for line 42. Limit on itemized deductions. You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than: y $150,000 if married filing separately y $250,000 if single y $275,000 if head of household y $300,000 if married filing jointly or qualifying widow(er) See the instructions for line 29 of Schedule A. Finally, the credit for prior year minimum tax is no longer partly refundable. See Form 8801 and its instructions. General Information for Preparing Your 2013 Income Tax Return Important Reporting Dates: March 15, 2014 March 15, 2014 March 30, 2014 April 15, 2014 May 31, 2014 Form 1099-OID for CMO, CDO, REMIC issued Widely Held Mortgage Trust (WHMT) issued Form 2439 reflecting any undistributed capital gains issued, if applicable Personal income tax returns due; deadline for IRA documents filed to establish an account and make contributions for the 2013 tax year Form 5498 issued to IRA holders who made a contribution for the 2013 tax year Separate Accounts You will receive a separate 1099 Consolidated Reporting Statement for each of your accounts with LPL Financial. Transferred Accounts The 1099 Consolidated Reporting Statement reflects business conducted with your financial representative during the time LPL Financial acted as the clearing agent. If you transferred an account to LPL Financial from another financial institution during 2013, your previous firm(s) may send you one or more Form 1099s summarizing any account activity that took place before your account was transferred to LPL Financial. Please be sure to include all Form 1099s or 1099-Rs when filing your tax returns, if applicable. 10 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

Turbo Tax You can also download your 1099-R and 1099 Consolidated Reporting Statement from LPL Financial through Turbo Tax. You will need a valid Account View username and password, or WealthVision email address and password, to access this information in Turbo Tax. The data will contain the latest information from our system, as well as cost basis, which will include any revisions that may have been applied. For REMIC, Widely Held Fixed Investment Trusts (WHFIT including WHMT), and 1099- Q information, please refer to your hard-copy statements received through postal mail. Online Tax Statements As part of the Core Technology Pricing this year, the new and improved Account View is now available to all clients. You can access the Account View site for free to download your tax statements online. These include tax statements from the 2010 tax year and forward. Click on the Statements tab and select Tax Statements from the Statement Type dropdown menu. Your screen will automatically refresh, and you will only need to select the tax year you are looking for under the Tax Year dropdown menu. WHFIT Reporting If you held an interest in a unit investment trust, mortgagebacked security, royalty trust, HOLDRs trust or commodities trust, we are now required to report certain details regarding transactions for these securities on IRS Form 1099 because these products are considered widely held fixed-investment trusts (WHFITs). IRS rules governing reporting for WHFITs require us to provide more detailed and comprehensive information regarding these investments and is now displayed on Form 1099-B. Forms 1099-DIV, 1099-INT and 1099-OID also display items of gross income and expense as required for WHFITs. For mortgage-backed WHFITs (also known as Widely Held Mortgage Trusts or WHMTs), an additional written tax information statement will be mailed to you by March 17, 2014. Please refer to our separate WHFIT Reporting Guide and consult with your tax advisor regarding the proper treatment of your share of income and expenses for WHFITs. IRS Assistance Refer to the following forms and publications for specialized information. All IRS forms and publications are available through the IRS Forms and Distribution Center at (800) 829-3676 or on the web at www.irs.gov. For taxpayer assistance, you may call the IRS at (800) 829-1040. Publication 514 Publication 550 Publication 551 Publication 564 Publication 590 Publication 1212 Foreign Tax Credit for Individuals Investment Income and Expenses Basis of Assets Mutual Fund Distributions Individual Retirement Arrangements (IRAs) Guide to Original Issue Discount (OID) Instruments Sample Tax Statements Included in this Tax Information Guide is a sample of the 1099 Consolidated Reporting Statement. Certain categories of transactions in this guide may not pertain to your account, and you will only receive 1099 statements for those types of income your account received during 2013. All total income boxes are located at the front of your 1099 Consolidated Reporting Statement to help simplify your tax-preparation process. All detailed transactions are found in the pages to follow so you can reconcile to your summary pages. 1099-B Proceeds from Broker and Barter Exchange Transactions 1099-B Separated into Four Sections In recent years, the IRS has pushed through several initiatives to account for underreported income. As a result, proceeds reporting on the 1099-B has grown complex. In some cases, you are required to recognize gains from income you did not tangibly receive. In the new layout of your 1099 Consolidated Reporting Statement, we have separated the 1099-B into four distinct categories, so the reasons for which we are reporting proceeds for you can be clearer. 1 Proceeds from Sale Trades or Exchanges and Tax Withheld Customer Initiated 2 Proceeds from Change in Corporate Control or Capital Structure Issuer Company Initiated 3 Principal Payments from Non-Mortgage Widely Held Fixed Investment Trusts Trustee Initiated 4 Regulated Futures Contracts Not Reported in 1099-B, Box 2 11

1 Proceeds from Sale Trades or Exchanges and Tax Withheld This detailed section reports where LPL Financial executed sale transactions (including short sales) of stocks, bonds, other debt obligations, commodities or forward contracts on your behalf. Under the recent reporting regime, the IRS created Form 8949 as an additional measure to capture proceeds, cost basis and gain/loss information in detail; and the subtotals for each Form 8949 would be mapped to its corresponding section on the revamped Form 1040, Schedule D. You must complete all necessary pages of Form 8949 before you complete line 1, 2, 3, 8, 9, or 10 of Schedule D This year, Form 8949 must be included if you are filing Schedule D for Forms 1040, 1065, 1065-B, 8865, 1120, 1120S, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-IC-DISC, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF and certain Forms 990-T, but not Form 1041. LPL Financial s 1099-B accommodates how you will need to complete Form 8949 and Schedule D to recognize your gains and losses. You must complete a separate Form 8949 for sales of: Covered securities (check Box A for short-term transactions and Box D for long-term transactions) Non-covered securities (check Box B for short-term and Box E for long-term) Sale Transactions for which you did not receive a 1099-B (check Box B for short-term and Box E for long-term) In response, the 1099-B is now segmented in the order below to make it easier to follow and map to your Form 8949: Short-Term Covered Transactions (Form 8949, Box A) Short-Term Non-Covered Transactions (Form 8949, Box B) Long-Term Covered Transactions (Form 8949, Box D) Long-Term Non-Covered Transactions (Form 8949, Box E) Unknown Basis or Holding Period (Form 8949, Box B or E) Tax Withheld (Form 1040 Box 62) How to Report In general, enter the details of each transaction shown on your 1099-B on a separate line of Form 8949. You can use as many Forms 8949 as you need. However, you can also opt not to report all your transactions on a separate line and instead attach your entire 1099-B section of your 1099 Consolidated Reporting statement and enter the combined totals from all your attached statements on Form 8949 with the appropriate box checked. 1 Form 8949 (2013) Attachment Sequence No. 12A Page 2 Name(s) shown on return. (Name and SSN or taxpayer identification no. not required if shown on other side.) Social security number or taxpayer identification number Most brokers issue their own substitute statement instead of using Form 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 D, E, or F 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 II Long-Term. Transactions involving capital assets you held more than one year are long term. For short-term transactions, see page 1. Note. You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported OMB No. 1545-0074 to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a; Form 8949 Sales and Other Dispositions of Capital Assets you are not required to report these transactions on Form 8949 (see instructions). Information about Form 8949 and its separate instructions is at www.irs.gov/form8949. 2013 You must check Department Box of the D, Treasury E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete Attachment Internal Revenue Service File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D. Sequence No. a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or 12A more of the Name(s) boxes, shown complete on return as many forms with the same box checked as you need. Social security number or taxpayer identification number (D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (E) Long-term Most brokers transactions issue their own reported substitute on Form(s) statement 1099-B instead showing of using Form basis 1099-B. was not They reported also may to provide the IRSbasis information (usually your cost) to you on the statement even if it is not reported to the IRS. Before you check Box A, B, or C below, determine whether you received any statement(s) and, if so, (F) Long-term transactions not reported to you on Form 1099-B 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. Adjustment, if any, to gain or loss. 1 Part I Short-Term. Transactions involving capital assets you (e) held one If you year enter an or amount less in are column short (g), term. (h) For long-term (c) (d) Cost or other basis. enter a code in column (f). Gain or (loss). (a) transactions, see (b) page 2. Date sold or Proceeds See the Note below See the separate instructions. Subtract column (e) Description of property Date acquired Note. You may aggregate disposed all short-term (sales price) transactions and see Column reported (e) on Form(s) 1099-B showing from column basis (d) and was (Example: 100 sh. XYZ Co.) (Mo., day, yr.) (Mo., day, yr.) (see instructions) in the separate (f) reported to the IRS and for which no adjustments or codes are (g) combine the result instructions Code(s) required. from Enter the total directly on Amount of with column (g) Schedule D, line 1a; you are not required to report these transactions instructions on Form adjustment 8949 (see instructions). You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 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. (A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (B) Short-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS (C) Short-term transactions not reported to you on Form 1099-B Adjustment, if any, to gain or loss. 1 (e) If you enter an amount in column (g), (h) (c) (d) Cost 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 Column (e) from column (d) and (Example: 100 sh. XYZ Co.) (Mo., day, yr.) (Mo., day, yr.) (see instructions) in the separate (f) (g) combine the result instructions Code(s) from Amount of with column (g) instructions adjustment SCHEDULE D (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Part I See instructions for how to figure the amounts to enter on the lines below. (d) (e) Proceeds Cost This form may be easier to complete if you round off cents to (sales price) (or other basis) whole dollars. 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract 1a Totals for all short-term transactions reported on Form negative amounts). Enter each total here and include on your 1099-B for which basis was reported to the IRS and for Schedule D, line 8b (if Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) which you have no adjustments (see instructions). Note. If you checked Box D above but the basis reported However, to the if IRS you was choose incorrect, to report enter all in column these transactions (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column on Form (g) in 8949, the separate leave this instructions line blank for and how to go figure to line the 1b amount. of the adjustment. 1b Totals for all transactions reported on Form(s) 8949 with Form 8949 (2013) Box A checked............. 2 Totals for all transactions reported on Form(s) 8949 with Box B checked............. 3 Totals for all transactions reported on Form(s) 8949 with Box C checked............. 2 Totals. Add the amounts in columns 4 (d), Short-term (e), (g), and gain (h) (subtract from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824. 4 negative amounts). Enter each total here and include on your 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule D, line 1b (if Box A above is checked), line 2 (if Box B Schedule(s) K-1............................ 5 above is checked), or line 3 (if Box C above is checked) Note. If you checked Box A above but 6 the Short-term basis reported capital to loss the IRS carryover. was incorrect, Enter enter the amount, in column if any, (e) the from basis line as 8 reported of your to Capital the IRS, Loss and enter Carryover an adjustment in column (g) to correct the basis. Worksheet See Column in the (g) instructions the separate instructions.... for. how.. to figure.. the.. amount.. of. the. adjustment......... 6 ( ) 6 in column (h). If For Paperwork Reduction Act Notice, 7 Net see your short-term tax return capital instructions. gain or (loss). Combine lines 1a through Cat. No. 37768Z Form you have 8949 any (2013) longterm capital gains or losses, go to Part II below. Otherwise, go to..... Part III on the back 7 Part II Long-Term Capital Gains and Losses Assets Held More Than One Year 1099-B DETAILS - PROCEEDS FROM SALE TRADES OR EXCHANGES AND TAX WITHHELD Capital Gains and Losses OMB No. 1545-0074 2013 Attachment Sequence No. 12 Attach to Form 1040 or Form 1040NR. Information about Schedule D and its separate instructions is at www.irs.gov/scheduled. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Your social security number Short-Term Capital Gains and Losses Assets Held One Year or Less (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) The proceeds stated on this page are reported net of option premiums. However, option premiums are built into the gain or loss amounts computed below. If you have securities sold because of the exercise of an option granted or acquired before 2014, we have included option premium information as a separate column on this page, to help you reconcile to the gain/loss amount shown on this statement. Should you elect to report net of option premiums, you must adjust your gain/loss amounts on your Form 8949. GROSS PROCEEDS WASH SALE DATE OF (LESS COMMISSIONS AMOUNT WASH SALE COLLECTIBLES SALE OR AND OPTION ADJUSTMENT LOSS ALLOCATION DATE OF COST OR OPTION SECURITY DESCRIPTION CUSIP ACQUISITION EXCHANGE PREMIUMS) OTHER BASIS GAIN OR (LOSS) PREMIUM 2 TO BASIS DISALLOWED3 FACTOR (CAF)4 (BOX 5) (BOX 8) (BOX 1D) (BOX 1B) (BOX 1A) (BOX 2A) (BOX 3) SHORT-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD ONE YEAR OR LESS (BOX 1C) COVERED (BOX 6B): FORM 8949 (BOX A) WITH BASIS REPORTED TO THE IRS UCB B93562120 1/5/2011 12/21/11 23,089.70 20,000.00 3,089.70 250.00 0.00 0.00 QTY (BOX 1E): 140.000 250.00 BERKSHIRE HATHAWAY INC 084670108 03/11/11 05/10/10 1,234,926.83 1,050,000.00 184,926.83 0.00 0.00 0.00 QTY (BOX 1E): 20.000 WAL-MART STORES INC 931142103 1/08/11 11/30/11 284,550.00 296,700.00 (12,150.00) 0.00 0.00 12,150.00) TOTAL SHORT-TERM COVERED 1,260,516.53 1,071,000.00 189,516.53 250.00 0.00 (12,150.00) NON-COVERED 1 (BOX 6A): FORM 8949 (BOX B) WITH BASIS NOT REPORTED TO THE IRS ANHEUSER BUSCH INBEV SA B6399C107 07/08/10 07/08/11 115,604.44 100,000.00 15,604.44 0.00 0.00 0.00 QTY (BOX 1E): 500.000 VANGUARD INTL GRTH INVS 921910204 01/05/11 05/29/11 50,000.00 45,000.00 5,000.00 0.00 0.00 0.00 QTY (BOX 1E): 2000.000 VANGRD HI YLD CORP INVS 922031208 01/04/11 11/17/11 7,895.00 8,000.00 (105.00) 0.00 0.00 0.00 QTY (BOX 1E): 500.000 XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 4,000.00 (37,850.00) QTY (BOX 1E): 500.000 TOTAL SHORT-TERM NON-COVERED 173,499.44 153,000.00 20,499.44 0.00 4,000.00 (37,850.00) LONG-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD MORE THAN ONE YEAR (BOX 1C) COVERED (BOX 6B): FORM 8949 WITH BASIS REPORTED TO THE IRS FT INFLTN HEDGE 2 FE RE 30273E585 09/28/11 24,538.94 2,540.00 21,998.94 0.00 0.00 0.00 QTY (BOX 1E): 2540.000 XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 0.00 (37,850.00) QTY (BOX 1E): 500.000 TOTAL LONG-TERM COVERED 24,538.94 2,540.00 21,998.94 0.00 0.00 (37,850.00) 1 These securities are not covered under the 1st and 2nd phases of the Cost Basis accounting legislations passed by Congress on October 3, 2008. Therefore the cost basis, acquisition date, disallowed loss from wash sales, and holding period are not being reported to the IRS for these securities. Please refer to the 2013 1099 Tax Guide online for more information on covered securities. 2 Please note that the amount displayed in this column is included in the amount listed in the Cost Or Other Basis column. If there is a wash sale adjustment amount displayed, your holding period includes the holding period of the stock or securities that were previously sold, where the loss deduction was postponed or disallowed. 3 The amounts listed in this column represent the losses you incurred from wash sales that cannot be deducted from your tax return. 4 Collectibles Allocation Factor (CAF): Represents the percentage of proceeds associated with UIT grantor trusts you sold in 2013 that contain assets considered collectibles, which is subject to a higher long-term capital gains rate of 28%, when units held over 1 year are disposed. Please refer to the 2013 WHFIT Guide online for details. (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) See instructions for how to figure the amounts to enter on the (g) (h) Gain or (loss) lines below. (d) (e) Adjustments Subtract column (e) Proceeds Cost to gain or loss from from column (d) and This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part II, combine the result with whole dollars. line 2, column (g) column (g) 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b. 8b Totals for all transactions reported on Form(s) 8949 with Box D checked............. 9 Totals for all transactions reported on Form(s) 8949 with Box E checked............. 10 Totals for all transactions reported on Form(s) 8949 with Box F checked.............. 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824...................... 11 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions.................. 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions....................... 14 ( ) 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back............................... 15 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule 2013 D (Form 1040) 12 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

1099-B Proceeds from Broker and Barter Exchange Transactions (continued) For example, report on line 2 of a Form 8949 with Box A checked (covered transactions) for all short-term gains and losses from transactions reported in the 1099-B section showing that the basis of property sold was reported to the IRS. If you have statements from more than one broker, report the totals from each broker on a separate line. Do not enter available upon request and summary totals in lieu of reporting the details of each transaction on Form(s) 8949 or attached statements. If you e-file your return but choose not to include your transactions on the electronic short-term capital gain (or loss) or long-term capital gain (or loss) records, you must attach Form 8949 or the relevant 1099-B sections of your 1099 Consolidated Reporting Statement to Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, and mail the forms to the IRS. Box 1a represents the date you sold the security. For short sales, this represents the settlement date of when the security was delivered to close the short sale. Report this date in column (c) of Form 8949 for the appropriate box A, B, or C form. Box 1a represents the date you sold the security. For short sales, this represents the settlement date of when the security was delivered to close the short sale. Report this date in column (c) of Form 8949 for the appropriate Box A, B, or C form. Box 1b represents the date you acquired the security. For short sales, this represents the trade date you acquired the securities you sold short to close the short sale. Sale of a block of stock acquired through several different purchases will reflect as Various in this box, and you may report this sale on one line in the same way in column (b). If you sold a security you received through inheritance from someone who died before or after 2010, report the sale or exchange on Form 8949 and enter Inherited in column (b) instead of the date you acquired the property. However, please see IRS Publication 4895 if the executor of the decedent s estate did or did not elect to file Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, to determine if you should reflect this on line 1 (Part I) or line 1 (Part II) of Form 8949. Box 2a shows the aggregate gross cash proceeds from all dispositions of securities (including short sales), commodities or forward contracts, reduced by commissions and option premiums. This includes securities sold due to the exercise of options. For securities sold because of the exercise of an option granted or acquired before 2014, you may, but are not required to, take option premiums into account in adjusting your gain/loss calculation. The amounts listed in Box 2a should be mapped to column (d) of your Form 8949. Box 3 shows the adjusted basis of any securities sold unless the basis or holding period is unknown, of which the transaction is then reported in the Unknown Basis or Holding Period section. The basis in this box has been adjusted for return of capital and liquidating distributions, disallowed losses from wash sales, OID accrual, partnership distributions, undistributed capital gains, bond amortization, etc. The basis of securities acquired by gift is generally the donor s basis in the security (basis carried forward). The basis of securities acquired through inheritance is generally the fair market value of the security on the date of death. If the basis shown on Form 1099-B is not correct, see the 2013 Instructions for Form 8949 for columns (f) and (g) for the adjustment you must make. For basis not shown in the Unknown Basis or Holding Period section, enter the correct basis of the property in column (e) on Form 8949. Box 5 shows any loss disallowed from a wash sale transaction (under section 1091) when the sale and purchase amounts occur in the same account for the same covered CUSIP. Report a wash sale on line 1 (Part I) or 1 (Part II) of Form 8949 with the appropriate box checked. Enter W in column (f). Enter the amount of loss not allowed as a positive number in column (g). Box 6a indicates that the sale of a security is not covered by the Cost Basis Reporting rules, while Box 6b indicates the sale is covered and will be reported to the IRS. Box 1c shows the holding period and determines the type of gain or loss, which takes into consideration information from transfer statements, issuer statements, inheritance and gift transfers. This box determines whether you will need to complete line 1 (Part I) or line 1 (Part II) of Form 8949. Please note that as a service, we furnish directly on your 1099-B section gain or loss computations option premium and amounts from previous wash sales used to adjust your basis, to help provide additional reference for preparing your return, but these columns are not reported to the IRS. While your proceeds are reported net of option premiums, the gain or loss includes option premiums in the calculation. Should you elect to report net of option premiums instead, you must adjust your gain or loss amounts on Form 8949 from the amounts displayed on your 1099-B. 13

2 2 Proceeds from Changes in Control or Capital Structure Reporting is also required on Form 1099-B when LPL Financial knows or has reason to know that a corporation in which you own stock has had a change in control or a substantial change in capital structure. You may be required to recognize gain from the receipt of cash, stock or other property that was exchanged for the corporation s stock. However, if indicated in the column for Box 2b, you cannot take a loss on your tax return based on gross proceeds from an acquisition of control or substantial change in capital structure reported in Box 2. Do not report this loss on Schedule D (Form 1040). Box 3 has been adjusted for corporate stock splits, mergers, spin-offs, etc. For principal payments received from REMIC or other fixed income securities, these may be displayed under the Unknown Basis or Holding Period section, since they adjust the basis of an asset you still hold. However, the 1099-B will represent LPL Financial s default account method, and reflect cost and gain or loss amounts equal to recognizing gain or loss upon full disposition of the asset. Please consult with your tax professional on reporting these transactions. 1099-B DETAILS - PROCEEDS FROM CHANGES IN CORPORATE CONTROL OR CAPITAL STRUCTURE This section includes cash and stock received from mergers, redemptions (including those redeemed at maturity), tenders, liquidations, cash received in lieu of fractional shares, bankruptcies and any other transaction where a price per share is not available due to the transaction initiated by the issuer and not by you. CASH OR STOCK RECEIVED IN REPORTABLE CHECK IF LOSS WASH SALE COLLECTIBLES CHANGE IN CONTROL OR NOT ALLOWED LOSS ALLOCATION DATE OF DATE OF COST OR ACTIVITY TYPE SECURITY DESCRIPTION CUSIP ACQUISITION EXCHANGE CAPITAL STRUCTURE OTHER BASIS 2 GAIN OR (LOSS) IN BOX2A3 DISALLOWED4 FACTOR (CAF)5 (BOX 2B) (BOX 5) (BOX 8) (BOX 1D) (BOX 1B) (BOX 1A) (BOX 2A) (BOX 3) SHORT-TERM CAPITAL GAINS OR (LOSSES) - ASSETS HELD ONE YEAR OR LESS (BOX 1C) COVERED (BOX 6B): FORM 8949 (BOX A) WITH BASIS REPORTED TO THE IRS ARROW ENERGY NL Q0538G107 01/05/11 12/21/11 14,107.14 12,000.00 2,107.14 MERGER QTY (BOX 1E): 400.000 BIOFORM MEDICAL INC 09065G107 02/05/11 10/25/11 98,100.00 75,000.00 23,100.00 QTY (BOX 1E): 1000.000 BJ SERVICES COMPANY 055482103 03/11/11 05/10/10 15,150.08 13,000.00 2,150.08 TENDER QTY (BOX 1E): 200.000 TOTAL SHORT-TERM COVERED 127,357.22 100,000.00 27,357.22 NON-COVERED 1 (BOX 6A): FORM 8949 (BOX B) WITH BASIS NOT REPORTED TO THE IRS BURLINGTON NRTHRN SANT 121NON909 01/05/11 05/29/11 665,600.00 500,000.00 165,600.00 QTY (BOX 1E): 500.000 VANGUARD AIRLS COM $.005 92201B307 01/04/11 11/17/11 0.00 8,000.00 (8,000.00) BANKRUPTCY QTY (BOX 1E): 250.000 XEROX CORP 008190100 03/11/11 05/10/10 15,150.08 20,907.82 (5,757.74) X FAIR MKT VALUE QTY (BOX 1E): 30.000 TOTAL SHORT-TERM NON-COVERED 792,001.53 638,907.82 153,093.71 3 Principal Payments From Non-Mortgage Widely Held Fixed Investment Trusts 1 These securities are not covered under the 1st and 2nd phases of the Cost Basis accounting legislations passed by Congress on October 3, 2008. Therefore the cost basis, acquisition date, disallowed loss from wash sales, and holding period are not being reported to the IRS for these securities. Please refer to the 2013 1099 Tax Guide online for more information on covered securities. 2 For principal payments from REMICs or other xed income securities, LPL Financial defaults to the accounting method of recognizing gain or loss at the nal redemption or disposition of the asset. You may instead elect a different accounting method and recognize gain or loss on every principal paydown, which would override or nullify the gain or loss amount shown on this statement. Should you choose the latter, please consult with your tax professional on calculating the actual gain or loss amount for your tax return. 3 A loss may not be taken on any cash and stock received from this merger. 4 The amounts listed in this column represent the losses you incurred from wash sales triggered by the timing of redemptions and reinvestments, which cannot be deducted from your tax return. 5 Collectibles Allocation Factor (CAF): Represents the percentage of proceeds associated with UIT grantor trusts you sold in 2013 that contain assets considered collectibles, which is subject to a higher long-term capital gains rate of 28%, when units held over 1 year are disposed. Please refer to the 2013 WHFIT Guide online for details. This third section of the 1099-B will contain sale transactions made by the trusts, which will be reported by the date and gross amount the trust sold the assets for, and not by the date and amount of proceeds that were paid to you. Some or all of the distributions made as late as March 2014 may be recognized as income for the 2013 tax year. A Cost Basis Allocation Factor (CBAF) is included to indicate what portion of your current basis in the trust should be applied to the proceeds for gain/loss reporting. Transaction types will also be identified to indicate the type of event that occurred. Incurred expenses and other adjustments associated with these assets will be found in the Non-Federally Reported Items section, and may be deductible on your return. The primary difference between the Cost Basis Allocation Factor (CBAF) and Collectibles Allocation Factor (CAF) is that the CBAF is furnished when the trust sells assets within the portfolio and the CAF is furnished when the investor sells units of a portfolio that contains collectibles. Please refer to the separate WHFIT Tax Guide for more information. 3 1099-B DETAILS - PRINCIPAL PAYMENTS FROM NON-MORTGAGE WIDELY HELD FIXED INVESTMENT TRUSTS Please refer to the Important Tax Information disclosure in the Summary section regarding the additional Widely Held Mortgage Trust (WHMT) statement that will be mailed to you by March 17, 2014. A separate 1099-B, related to WHMTs, will contain information released by issuers in March 2014, and will need to be added to the 1099-B box totals listed on this form. The total amounts listed on both statements must be included on your tax return. The issuers for the payments below include Unit Investment Trusts, Holding Company Depositary Receipts Trusts, Commodity Trusts and Royalty Trusts, which are treated as grantor trusts and fall under WHFIT regulations, as de ned by 1.671-5. The information provided to you in this section was obtained from the issuer, its trustee or an agent of the issuer. Some or all of a distribution paid as late as March 2014 may be recognized as income for the 2013 tax year. With these trusts, sales are reported by when the trust sells the assets within its portfolio. In some cases, proceeds from these sales were used to pay the trust s expenses, which may have resulted in no distributions paid to you. Expenses and other adjustments associated with these assets can be found in the Non-Federally Reported Items section, which may be deductible on your tax return on Schedules A or E (if applicable) or may impact your cost basis on Schedule D. Please review this information with your tax advisor. COST BASIS SECURITY DESCRIPTION SECURITY ID DATE 1 PROCEEDS AMOUNT TRANSACTION TYPE ALLOCATION FACTOR 2 (BOX 8) (BOX 1D) (BOX 1A) (BOX 2A) (IF APPLICABLE) FT BAL INC SLT 5 CA MO 302667290 04/30/11 1,000.00 PRINCIPAL DISTRIBUTION QTY (BOX 1E): 5000.000 FT BAL INC SLT 5 CA MO 302667290 07/31/11 1,500.00 PRINCIPAL DISTRIBUTION QTY (BOX 1E): 4000.000 FT BAL INC SLT 5 CA MO 302667290 10/08/11 2,000.00 REDEMPTION QTY (BOX 1E): 9000.000 FT HIGH YLD INC CE 9 CA 30268H288 01/30/11 0.00 RECEIPT (REPORTABLE SALE) 0.32 QTY (BOX 1E): 1000.000 FT HIGH YLD INC CE 9 CA 30268H288 02/27/11 0.00 RECEIPT (REPORTABLE SALE) 0.45 QTY (BOX 1E): 500.000 FT HIGH YLD INC CE 9 CA 30268H288 03/31/11 0.00 RECEIPT (REPORTABLE SALE) 0.06 QTY (BOX 1E): 200.000 FT MUN CLSD 11 MO FEE CA 30268H346 01/25/11 100.00 PRINCIPAL DISTRIBUTION QTY (BOX 1E): 1500.000 FT MUN CLSD 11 MO FEE CA 30268H346 05/29/11 50.00 PRINCIPAL DISTRIBUTION QTY (BOX 1E): 3000.000 FT MUN CLSD 11 MO FEE CA 30268H346 11/17/11 25.00 PRINCIPAL (TERMINATION) QTY (BOX 1E): 2500.000 TOTAL PRINCIPAL PAYMENTS FROM NON-MORTGAGE WIDELY HELD FIXED INVESTMENT TRUSTS (BOX 2A) $4,675.00 1 Date: Proceeds from WHFITS are reportable by when they are received by the trust, regardless of when they are paid to you. 2 Cost Basis Allocation Factor: This factor represents the ratio of assets sold divided by the total net asset value of the trust, and tells you what portion of your current basis in the trust is to be applied to the proceeds for gain/loss reporting. This factor allows you to calculate your new adjusted basis. Under 1.671-5, LPL Financial is required to provide you this ratio for your adjusted basis calculation. 4 Regulated Futures Contracts Reporting is also required for profit or (loss) on regulated futures contracts. Box 9 shows the profit or (loss) realized on regulated futures or foreign currency contracts closed during 2013. Box 10 shows any year-end adjustment to the profit or (loss) shown in Box 10 due to open contracts on December 31, 2011. Box 11 shows the unrealized profit or (loss) on open contracts held in your account on December 31, 2013. These are considered sold as of that date. This will become an adjustment reported in Box 10 in 2014. Box 12 totals the amounts listed in Boxes 9 through 11, representing the aggregate profit or (loss) on regulated futures or foreign currency contracts for this year. Include this amount on your 2013 Form 6781. 4 1099-B DETAILS - REGULATED FUTURES CONTRACTS UNREALIZED UNREALIZED PROFIT OR (LOSS) PROFIT OR (LOSS) PROFIT OR (LOSS) REALIZED IN 2013 ON OPEN ON OPEN AGGREGATE ON CLOSED CONTRACTS CONTRACTS PROFIT OR (LOSS) SECURITY DESCRIPTION SECURITY ID DATE CONTRACTS 12/31/2012 12/31/2013 ON CONTRACTS (BOX 8) (BOX 1D) (BOX 9) (BOX 10) (BOX 11) (BOX 12) CALL MXS 061911 17 4060469 12/31/2012 1,697.50 CALL MXS 061911 17 4060469 12/31/2012 1,447.50 CALL MXS 061911 17 4060469 12/31/2012 500.00 CALL MXS 061911 17 4060469 12/31/2012 500.00 CALL MXS 061911 17 4060469 12/31/2012 1,197.50 CALL MXS 061911 17 4060469 12/31/2012 947.50 PUT RUT 071711 530 4151345 12/31/2012 (16,586.07) PUT RUT 071711 530 4151345 12/31/2012 (16,586.07) PUT RUT 061911 560 4151794 12/31/2012 1,472.25 PUT RUT 061911 560 4151794 12/31/2012 1,472.25 C RUT 112012 770 4152044 12/31/2012 (1,698.80) C RUT 112011 770 4152044 12/31/2012 1,000.00 C RUT 112011 770 4152044 12/31/2012 (2,698.80) P RUT 121811 640 4152844 12/31/2012 18,580.84 P RUT 121811 640 4152844 12/31/2012 18,580.84 P VIX 011911 24 4157355 12/31/2012 1,470.00 P VIX 011911 24 4157355 12/31/2012 1,470.00 P VIX 011911 22.50 4157150 12/31/2012 (16.86) P VIX 011911 22.50 4157150 12/31/2012 100.00 P VIX 011911 22.50 4157150 12/31/2012 (116.86) C VIX 011911 25 4157173 12/31/2012 1,869.46 C VIX 011911 25 4157173 12/31/2012 200.00 C VIX 011911 25 4157173 12/31/2012 1,669.46 C NDX 012211 2250 4260690 12/31/2012 (34,579.27) C NDX 012211 2250 4260690 12/31/2012 5,000.00 C NDX 012211 2250 4260690 12/31/2012 (39,579.27) BOX 9: TOTAL PROFIT OR (LOSS) REALIZED IN 2013 ON CLOSED CONTRACTS (27,813.45) BOX 10: TOTAL UNREALIZED PROFIT OR (LOSS) ON OPEN CONTRACTS - 12/31/2012 7,300.00 BOX 11: TOTAL UNREALIZED PROFIT OR (LOSS) ON OPEN CONTRACTS - 12/31/2013 1,470.00 BOX 12: AGGREGATE PROFIT OR (LOSS) ON CONTRACTS (33,643.45) 14 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

Direct business (LPL Financial longer reports sales of fund-controlled assets on the 1099-B) To comply with Phase 2 of the cost-basis legislation, the Investment Company Institute (ICI) has determined as best practice that full ownership of the reporting responsibility will return to mutual funds for sales of assets held directly with mutual fund sponsors but executed through broker/ dealers. You should therefore receive a 2013 1099-B directly from your mutual fund for direct business trades. While LPL Financial will generally not report these trades on Form 1099-B, any information related to this will be reflected in the Non-Federally Reported Items section. 1099-DIV Dividends and Distributions 1099-DIV DETAILS - DIVIDENDS AND DISTRIBUTIONS This section may contain federally reported income in boxes 10 and 11, which may be useful in helping you prepare your tax return. This income may be taxable at the state or local level. Please review this information with your tax advisor. SECURITY DESCRIPTION CUSIP QUANTITY DATE EX-DIVIDEND DATE ACTIVITY AMOUNT IRS BOX STATE STATE CTRY UNDIST INC* IDENTIFICATION NO. (BOX 12) (BOX 13) ALLIANCEBERNSTEIN D1668R123 1.000 07/19/12 07/19/12 DIVIDEND 16,926.46 1A CA 95-2834236 ALLIANCEBERNSTEIN D1668R123 5.000 07/23/12 07/23/12 DIVIDEND 16,926.46 1A ALLIANCEBERNSTEIN D1668R123 9,999.999 08/24/12 08/24/12 DIVIDEND 11,804.00 1A ALLIANCEBERNSTEIN D1668R123 1.000 09/28/12 09/28/12 CAPITAL GAIN 14,474.35 2A SUBTOTAL 60,131.27 FT ENRGY INC 15 FE RE MO D1668R124 1.000 07/19/12 07/19/12 QUALIFIED DIVIDEND 5.00 1A FL 99-9999999 UND GUINNESS ATKINSON FDS D18190898 2.000 09/28/12 09/28/12 LIQUIDATION 9.00 8 MORGAN STANLEY G0129K104 500.000 07/19/12 07/19/12 DIVIDEND 9.00 1A AZ 99-9999999 MORGAN STANLEY G0129K104 20.000 07/23/12 07/23/12 TAX WITHHELD (9.00) 4 MORGAN STANLEY G0129K104 2.000 09/28/12 09/28/12 RETURN OF CAPITAL 9.00 3 SUBTOTAL 9.00 NATIXIS FUNDS TRUST II D1668R125 25.000 09/28/12 09/28/12 ST CAP GAIN DIST 52.00 1B OPPENHEIMER PORTFOLIO D56246465 1.000 07/19/12 07/19/12 CAPITAL GAIN 2,500.00 2A MO 99-9999999 TYCO INTERNATIONAL LTD D1668R111 1.000 07/23/12 07/23/12 QUALIFIED DIVIDEND 60.00 1B TYCO INTERNATIONAL LTD D1668R111 1.000 07/19/12 07/19/12 CAPITAL GAIN 25.00 2A TYCO INTERNATIONAL LTD D1668R111 1.000 09/28/12 09/28/12 FOREIGN TAX AT SOURCE (3.00) 6 TYCO INTERNATIONAL LTD D1668R111 1.000 10/01/12 10/01/12 INVESTMENT EXPENSE (3.00) 3 SUBTOTAL 79.00 * UND: This Unit Investment Trust had undistributed income which adjusts cash income to accrual basis for tax reporting. LPL Financial is required to report to the IRS any dividends and other distributions credited to your account in 2013. Each transaction is listed separately in order to assist you in determining whether the payment qualifies for favorable tax treatment. Item and Box in Which It Should Appear Box 1a: Total ordinary dividends (includes short-term capital-gain distributions paid by RICs or REITs) Box 1b: Qualified dividends Portion of Box 1a that is eligible for the 15% or 0% capital gains rates Box 2a: Total capital-gain distributions paid by RICs or REITs from its net realized long-term capital gains Box 2b: Portion of Box 2a that is unrecaptured section 1250 gain from certain depreciable real property Box 2c: Portion of Box 2a that is Section 1202 gain from certain small business stock that may be subject to a 50% exclusion Where to Report See Form 1040 Instructions for: Form 1040, line 9a. If >$1,500, see instructions for Form 1040, Schedule B. Form 1040 line 9b Form 1040, line 13, or if required, Schedule D, line 13. If no amount is shown in Boxes 2B 2D and your only capital gains and losses are capital-gain distributions, you may be able to report the amounts shown in Box 2A on line 13 of Form 1040 rather than Schedule D. See Form 1040 instructions. Form 1040 Schedule D, line 19 Box 2d: Shows 28% rate gain from sales or exchanges of collectibles Form 1040 Schedule D, line 18 Box 3: Shows part of the distribution that is non-taxable because it is a return of your cost (or other basis). You must reduce your cost (or other basis) by this amount for figuring gain or loss when you sell your stock. But if you recoup all your cost (or other basis), report future distributions as capital gains. Box 5: Shows your share of expenses of a non-publicly offered RIC. This amount is included on Box 1a. See Exclusion of Gain on Qualified Small Business (QSB) Stock in the instructions for Schedule D See instructions to line 9a of Form 1040. Also see IRS Publication 550 for more information. Schedule A, line 23 15

Box 6: Shows foreign taxes paid that you may be able to claim as a deduction or credit on Form 1040 Box 10: Shows exempt-interest dividends from a mutual fund or other regulated investment company (RIC). This amount may be subject to backup withholding. In addition, LPL Financial may be required to report payments of interest or interest-dividends on federally tax-exempt municipal bonds to other state tax authorities, such as California, for non- California municipal bonds. Currently, we are reporting this for California, New York, Connecticut and Minnesota. Box 11: Portion of Box 10 that is subject to the alternative minimum tax (AMT) Form 1040, line 47, or Schedule A, line 8; but first see instructions for line 47 Form 1040, line 8b Form 6251, line 12 1099-INT Interest Income 1099-INT DETAILS - INTEREST INCOME Items listed as Interest on Tax Credit Bonds are being reported to the Internal Revenue Service pursuant to provisions of Internal Revenue Code Section 6049(d)(9)(B). Corporations are not exempt from this reporting. Please be certain your income tax return is reconciled with this content. If applicable, any positive adjustments related to contingent payment debt instruments will be listed in this section. Please refer to the issuer s prospectus for additional information and review with your tax professional. Exempt-interest dividends from a mutual fund or other regulated investment company (RIC) are no longer reported on Form 1099-INT. Those amounts are reported on Form 1099-DIV, Dividends and Distributions, in boxes 10 and 11. Please refer to the Important Tax Information disclosure in the Summary section regarding the additional Widely Held Mortgage Trust (WHMT) statement that will be mailed to you by March 17, 2014. The WHMT statement will include a separate 1099-INT, containing tax information released by issuers in March 2014, related to interest paid from mortgage pools. The total interest income listed on both your 1099 Consolidated Reporting statement and your WHMT statement must be included on your tax return. SECURITY DESCRIPTION CUSIP QUANTITY DATE ACTIVITY AMOUNT IRS BOX STATE STATE CTRY UNDIST INC* IDENTIFICATION NO. (BOX 10) (BOX 12) (BOX 13) DENVER CO 5.0 120128 249189AT8 5,000.000 08/01/11 EXEMPT ACCRUED INTEREST 29.86 8 FRANKLIN FED TAX FREE A 353519101 2,049.690 08/02/11 DIVIDENDS EXEMPT FROM TAXES 91.01 8 FRANKLIN FED TAX FREE A 353519101 2,049.690 08/02/11 DIVIDENDS SBJ TO ALT MIN TAX 5.33 9 SUBTOTAL 96.34 MATAGORDA TX5.125 110128 57652TAV9 5,000.000 08/03/11 EXEMPT ACCR INT SUBJECT TO AMT 46.98 9 MNNEAPLIS MN 5.25 010111 603827EU6 10,000.000 08/04/11 INTEREST SBJ TO ALT MIN TAX 262.50 9 NUV TX EX UT NATL 346 MO 6710A5790 509.000 08/05/11 INTEREST FROM MUNICIPAL BONDS 221.67 8 UND NUV TX FR INSD NTL 349MO 6710A7101 340.000 08/06/11 TAX EXEMPT INTEREST 143.89 8 TOYOTA MOTOR CORP 08/07/11 INTEREST 6,000.00 1 UNITED STATES TREASURY BILLS 0.000 08/08/11 INTEREST 609.02 3 UNITED STATES TREASURY BILLS 0.000 08/08/11 INTEREST 982.70 3 SUBTOTAL 1,591.72 * UND: This Unit Investment Trust had undistributed income which adjusts cash income to accrual basis for tax reporting. LPL Financial is required to report to the IRS any interest income credited to your account during 2013. Interest income may be derived from U.S. or foreign corporations, U.S. government agencies, any credit balance with LPL Financial, certificates of deposit, bonds, notes, savings bonds, treasury obligations or other debt obligations. Credit allowable to holders of specific tax credit bonds are also reportable as interest and are included in Box 1. The reporting exemption for corporations does not apply to this credit, and therefore the interest must be reported to the corporation and the IRS. Item and Box in Which It Should Appear Box 1: Shows taxable interest paid, including credit from tax credit bonds, to you during 2013 Box 3: Shows interest from U.S. savings bonds and/or U.S. Treasury obligations Where to Report See Form 1040 Instructions for: Form 1040 line 8a. If >$1,500, see instructions for Form 1040 Schedule B. Form 1040 line 8a. If >$1,500, see instructions for Form 1040, Schedule B. Box 5: Shows your share of investment expenses of a single-class REMIC Form 1040, Schedule A, line 23 Box 6: Any foreign tax withheld and paid on interest Box 8: Shows tax-exempt interest; this amount may be subject to backup withholding Box 9: Portion of Box 8 that is subject to the alternative minimum tax (AMT) Form 1040, line 47, or Schedule A, line 8. But see instructions for line 47 first. Form 1040, line 8b Form 6251, line 12. See the Instructions for Form 6251, Alternative Minimum Tax Individuals. You may also be required to report tax-exempt income on your state tax return, in addition to your Form 1040. 16 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

1099-OID Original Issue Discount 1099-OID DETAILS - ORIGINAL ISSUE DISCOUNT Please refer to the Important Tax Information disclosure in the Summary section regarding the additional Real Estate Mortgage Investment Conduit (REMIC) statement that will be mailed to you by March 15, 2014. The REMIC statement will include a separate 1099-OID, related to CMO/CDO/REMIC securities, and contain tax information released by issuers in March 2014. These amounts must be added to the 1099-OID box totals listed on this form as the total OID income listed on both your 1099 Consolidated Reporting statement and your REMIC statement must be included on your tax return. This may or may not be the correct gure to report on your income tax return. See instructions on the last page. Please also note that negative OID amounts are not reported to the IRS but may be useful in helping you prepare your tax return. OID shortfall information will be located in the Non-Federally Reported Items section in this statement, to help provide as a reference to adjust your tax return. Any positive adjustments related to contingent payment debt instruments, will be listed in the 1099-INT details section of this statement. STATE FOREIGN COUNTRY SECURITY DESCRIPTION DATE ACTIVITY AMOUNT IRS BOX STATE IDENTIFICATION NO. OR U.S. POSSESSION (BOX 10) (BOX 11) (BOX 12) AON CAP A 8.205 010127 07/19/11 OID INTEREST 1,025.63 2 CA 95-2834236 CAT SER T 0.0 111507 07/23/11 OID U.S. TREAS 10,376.00 6 MX LYONDELL CHEM 9.5 121508 07/28/11 OID ACCRUED INT 401.11 2 UBS PNEWBBR PTHFN T&G 18 08/01/11 LONG TERM OID 1,196.22 1 UBS PNEWBBR PTHFN T&G 18 08/01/11 LONG TERM OID 1,196.22 1 SUBTOTAL 2,392.44 LPL Financial is required to report to the IRS any Original Issue Discount (OID) that is deemed to have been constructively received by your account in 2013. OID is the difference between the stated redemption price at maturity and the security s original issue price. Securities issued with OID may include any bonds, notes, certificate of deposit or other evidence of indebtedness having a term of more than one year. OID is classified as a type of interest income, and is taxable as interest over the life of the obligation. If you are a holder of a security that was issued with OID, you must include a portion of the OID in your gross income each year you hold the obligation, even if you did not receive any cash payments. If you purchased the security at original issue and owned the obligation for the entire tax year, report the entire amount as interest income on line 8a, Form 1040. If your total interest income including OID is over $1,500, also report the amount in Part 1, Schedule B, Form 1040. Special note: If you purchased the security at a price other than the original issue price, you may need to adjust the OID amount due and make the appropriate adjustment on your Schedule B, Form 1040. If you held a Collateralized Debt Obligation (CDO), Collateralized Mortgage Obligation (CMO), or a Real Estate Mortgage Investment Conduit (REMIC) security, you will receive an additional REMIC statement by March 15, 2014, which represents a supplemental 1099-OID statement, and will need to be added to your return. If you are invested in a contingent payment debt instrument, you must report OID as it accrues each year. In general, a contingent payment debt instrument provides for one or more payments that depend on timing or amount. The amount shown on Form 1099-OID, Box 1, therefore, may not be the correct amount to include in income, especially if the contingent payment received was different from the projected amount. To figure the OID on a contingent payment debt instrument, you need to know the comparable yield and projected payment schedule, which must be made available by the issuer. The comparable yield generally is the yield at which the issuer would issue a fixed-rate debt instrument with terms and conditions similar to those of the bond you hold. The projected payment schedule is created by the issuer on issue date and includes all fixed payments due and a projected fixed amount for each contingent payment. It is used to determine the issuer s and holder s interest accruals and adjustments. Because this information is not available at the time of payment, LPL Financial has actively obtained the necessary yields and schedules on your behalf. If your contingent payment is greater than the projected amount, you have a positive adjustment, which should be treated as additional interest and will be reflected on your Form 1099-INT. If your actual payment is less than the projected fixed amount, this is an OID shortfall and will be reflected on the Non-Federally Reported Items section of this statement. Use this shortfall or negative adjustment to offset OID on your Schedule B. If the negative adjustment is more than the OID on the bond for the tax year, you can claim the difference as ordinary loss. However, this loss is limited to the OID on the bond you included as income in prior tax years. Your basis in a contingent payment debt instrument should be increased by the OID included in income but is not impacted by OID shortfall or positive adjustments. You should decrease your basis by any non-contingent payment received and the projected payment scheduled to be received. Please refer to IRS Publication 1212 for more information. 17

1099-MISC Miscellaneous Income 1099-MISC DETAILS - MISCELLANEOUS INCOME Note: Substitute payments made to corporations in lieu of dividends and tax-exempt interest must be reported to the Internal Revenue Service. If you held a royalty trust in 2013 with LPL Financial, you will receive an additional trust tax booklet in March 2014 to help you prepare your return. These royalty trust tax booklets can also be accessed online at http://lpl nancial.lpl.com/documents/pdf/royaltytrustinformation.pdf. Please review this information with your tax advisor once you have received all tax documents related to that security.. STATE FOREIGN COUNTRY SECURITY DESCRIPTION DATE ACTIVITY AMOUNT IRS BOX IDENTIFICATION NO. OR U.S. POSSESSION (BOX 17) (BOX 12) AMCAP INC NOTES 07/19/11 OTHER INCOME 125.00 3 KEN CORP. 08/01/11 SUBSTITUTE PAYMENT 427.95 8 95-2834236 KEN CORP. 08/01/11 SUBSTITUTE PAYMENT 427.95 8 MX SUBTOTAL 855.90 The amount shown in Box 3 may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages or other taxable income. Generally, report this amount on the Other income line of Form 1040 and identify the payment. If it is trade or business income, report this amount on Schedule C, C-EZ, or F (Form 1040). Box 8 shows substitute payments in lieu of dividends or tax-exempt interest received by your broker on your behalf as a result of a loan of your securities. Do not treat these substitute payments as dividends or interest. Report as Other income line 21 of Form 1040. The reporting exemption for corporations does not apply to these substitute payments and therefore must be reported to the corporation and the IRS. Non-Federally Reported Items Section Additional Information & Items Not Reported to the IRS NON-FEDERALLY REPORTED ITEMS SECTION DETAILS - NON-FEDERALLY REPORTED ITEMS Please refer to the Important Tax Information disclosure in the Summary section regarding the additional Widely Held Mortgage Trust (WHMT) statement that will be mailed to you by March 17, 2014. A separate statement listing other non-federally reported items in relation to WHMTs will contain information released by issuers in March 2014. A Form Schedule K-1 should be mailed to you directly from the General Partner, reporting your pro rata share of the partnership s taxable income. Although the partnership generally is not subject to income tax, you are liable for tax on your share of partnership income, whether or not distributed. Please use the Schedule K-1 to include your share of income on your tax return. The information on this statement only represents cash distributions you received from the partnership, but is not classi ed as taxable or dividend income, and is instead considered a return of capital (adjustment to your basis). This section lists non-federally reported items, which may be useful when preparing your tax return. These items may or may not be taxable at the state or local level. Please review this information with your tax advisor. If you have OID shortfall listed, this calculation is based on the period you held these assets with LPL Financial during tax year 2013. Please consult with your tax professional to determine if an adjustment may be required. COLLECTIBLES DESCRIPTION CUSIP DATE ACTIVITY QUANTITY PRICE AMOUNT ALLOCATION NFR BOX FACTOR (CAF) 1 AEI INCOME & 12345678 07/19/11 OPT PREM. 0.000 0.0000 986.55 3 GROWTH FD BRASKEM SA ADR REP PFD A 33345678 08/01/11 INV EXP-PROCEEDS 650.000 0.0000 (10,536.45) 7 COMARCO INC 22345678 08/08/11 OPT PREM. 1,252.000 2.2100 322,642.35 3 COMARCO INC 22345678 08/08/11 ADD TO BASIS 1,225.000 2.2100 322,642.35 3 SUBTOTAL 645,284.70 GROUPE BRUXELLES LAMBERT 12543678 03/12/11 OID ON MUNI 92.000 88.6500 238,140.69 5 MARGIN DEBIT INTEREST 12347890 04/01/11 MARGIN INTEREST 0.000 0.0000 735,152.48 1 MARGIN DEBIT INTEREST 12347890 04/01/11 DIVIDEND 0.000 0.0000 693,102.55 2 CASH DEBIT INTEREST 12347890 05/19/11 CASH DEBIT INT 0.000 0.0000 739,272.66 1 SUBTOTAL 2,167,527.69 PURCHASES ABC CORP 66434224 05/01/11 PURCHASE 1.000 0.0000 200,000.00 0.000344 11 FT INFLTN HEDG PRT CA MO 98765432 04/01/11 PURCHASE 1.000 0.0000 200,000.00 11 FT INFLTN HEDG PRT CA MO 98765432 04/01/11 PURCHASE 1.000 0.0000 200,000.00 11 SUBTOTAL 400,000.00 1 Collectibles Allocation Factor (CAF): Represents the percentage of proceeds associated with UIT grantor trusts you sold in 2013 that contain assets considered collectibles, which is subject to a higher long-term capital gains rate of 28%, when units held over 1 year are disposed. Please refer to the 2013 WHFIT Guide online for details. *Option Premium amounts on this page represent interest payments from assets such as structured products that have reclassi ed a portion to nontaxable option premium to align with the tax treatment prescribed in the product s prospectus. Any basis adjustments reported on this page generally apply to WHFITs such as royalty trusts and HOLDRS trusts, where a portion of the distribution is reallocated as either a reduction or addition to cost basis, depending on whether the income distributed exceeds or is less than the reportable amount. Please note that the cost basis of your position on these speci c assets have not been adjusted to re ect these amounts and you will need to consult with your tax professional to apply these reallocations accordingly. This section of your 1099 Consolidated Reporting Statement reports federally tax-exempt long-term OID on tax-exempt municipal bonds, any margin interest paid during 2013 (which may be deductible as an investment interest expense) and total return of principal. LPL Financial does not report this information to the IRS, but may be required to report the information to California; and other state tax authorities such as New York, Connecticut and Minnesota. You are required to report tax-exempt income on Form 1040 and may be required to report tax-exempt income on your state tax return. 18 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

Limited Partnerships We do not report limited partnership distributions to the IRS. You should receive a Schedule K-1 (Form 1065, Partner s Share of Income, Credits, Deductions, etc.) directly from the general partner. Typically, they do not issue their tax information until late March. If you do not receive a K-1 or have questions, you should contact your financial representative or the partnership directly. IRS Publications 925, Passive Activity and At-Risk Rules and 541, Partnerships, may be useful to you. Managed Account Fees The advisory fee is the management fee you paid for investment advisory services on an advisory account. The fee is calculated based upon the annual account fee rate and quarter end market value of the account, and is debited directly from accounts on a quarterly basis in advance of the quarter. This payment qualifies under Other Expenses in line 23 of your 1040 Schedule A, as it was used to produce taxable income and manage property held for earning income. You may therefore reflect this expense as a deduction on your return, to the extent the expense exceeds 2% of your adjusted gross income (AGI). Please see IRS 2013 Instructions for Schedule A (Form 1040) for more information. We also include the managed account fees from flexible billing arrangements on the 1099s of the accounts the charges are paid from. Margin Interest Most taxpayers may deduct interest on margin accounts as investment interest in the year paid. Generally, your deduction for investment interest expense is limited to the amount of your net investment income and is calculated on IRS Form 4952 (Investment Interest Expense Deduction). The amount of investment interest that is deductible can be claimed on Line 14, Schedule A, Form 1040. See IRS Publication 550 for more information. 19

Non-Federally Reported Items Section Additional Information & Items Not Reported to the IRS (continued) Options While brokers are not required to report option investment activity to you and the IRS until 2015 for the 2014 tax year, we have included an Options page to the 1099 Consolidated Reporting Statement, capturing your sales of option contracts. An equity option is any option to buy or sell stock, or any option for which the value is determined directly or indirectly to be in reference to any stock, group of stocks or stock index. If you traded or held equity options during 2013 in your LPL Financial account, you have received taxable income, and the IRS now requires you to report any capital gains or losses recognized on IRS Form 8949, Box C, for short-term transactions, and Box F for long-term transactions. 2013 OPTIONS SECTION (For IRS Form 8949 Box C) For sale transactions conducted for which you did not receive a 1099-B, please reference the information below to assist in ling your IRS Form 8949 (Box C). These are the details for box 12 in the Non-Federally Reportable box on the summary section of your statement. DESCRIPTION QUANTITY CUSIP DATE ACQUIRED DATE SOLD NET PROCEEDS COST OR OTHER BASIS GAIN OR (LOSS) SHORT-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD ONE YEAR OR LESS PUT ALCOA INC 50.00 123456789 MM/DD/YY 04/12/11 50.00 1.43 7,139.85 TOTAL SHORT-TERM OPTION SALES 50.00 1.43 7,139.85 CAPITAL GAINS OR (LOSSES) OF LONG-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD MORE THAN ONE YEAR CALL APPLE INC 5.00 234567890 MM/DD/YY 02/07/11 5.00 74.20 37,064.28 TOTAL LONG-TERM SALES 5.00 74.20 37,064.28 CAPITAL GAINS OR (LOSSES) OF OPTION Supplemental State Tax Information To supplement the federal 1099 information furnished to you, this section lists the dollar amount of income derived from federal or municipal obligations and is broken down on a state-by-state basis. You will need to review your state requirements. A portion of your income dividend attributable to interest earned by the fund on securities issued by your state may be tax-exempt in your state based on your state s tax laws. In addition, not all federal source income is state-tax exempt. For these reasons, we strongly recommend you consult with your tax advisor or state tax authority. 2013 SUPPLEMENTAL STATE TAX INFORMATION DETAILS - ADDITIONAL NON-FEDERALLY REPORTED ITEMS This section lists the dollar amount of income derived from federal or municipal obligations, based on a percentage of income reported in the details of your 1099-Consolidated statement, received by the following funds on a state-by-state basis. A portion of your dividend attributable to interest earned by a fund on securities issued by your state may be tax-exempt in your state based upon your state s tax laws. Please review your state s requirements. This section also includes: percentage of income from corporate dividends to calculate your dividend received deduction (DRD), percentage from repurchase agreements, percentage from foreign source income, percentage of capital gain from federal securities and percentage of ve-year long-term gain. This information represents what was available at the time your 1099 was prepared, which may not be complete and can be subject to change. Please contact your mutual fund directly if you need to verify this information. Not all Federal source income is state tax exempt. You may need to consult with your tax advisor or state tax authority. Security Description: ISHS RSL1000 GRW ET CUSIP: 464287614 SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SOURCE OF INCOME SOURCE AMOUNT SOURCE OF INCOME SOURCE AMOUNT SOURCE OF INCOME SOURCE AMOUNT Alabama $1,206.33 Utah $56.43 Washington $93.00 U.S. Treasury $13.99 Foreign Source Income $13,432.55 Security Description: THORNBURG LTD TRM MUNI I CUSIP: 885215434 SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SOURCE OF INCOME SOURCE AMOUNT SOURCE OF INCOME SOURCE AMOUNT SOURCE OF INCOME SOURCE AMOUNT Corporate Dividend Exclusion $37.06 Security Description: ABCDEFG CORP CUSIP: 987654321 SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SUPPLEMENTAL SOURCE OF INCOME SOURCE AMOUNT SOURCE OF INCOME SOURCE AMOUNT SOURCE OF INCOME SOURCE AMOUNT Other/Undesignated Indirect Federal $119.76 20 REDESIGNED 1099 CONSOLIDATED REPORTING STATEMENT

Glossary of Terms Term Adjusted Basis Covered Security Definition The initial basis adjusted for reinvestments, corporate actions, undistributed capital gains, return of capital and liquidating distributions, bond amortization, Original Issue Discount accrual, and Partnership Distributions on CMOs, CDOs, REMICs and MLPs. Security subject to the basis reporting requirements if it is acquired after its effective date. Covered securities are exclusive to securities acquired for cash. It also includes: A specified security transferred to an account if the receiving broker/dealer receives a transfer statement reporting the security as a covered security A security acquired due to a stock dividend, stock split, reorganization, redemption, stock conversion, recapitalization, corporate division or other similar action, if the basis of the acquired security is determined from the basis of a covered security Initial Basis Non-Covered Security If you paid cash for a security, the initial basis is generally the basis reported on your purchase trade confirmation. This represents: 1. Total cash paid by you or credited against your account, plus 2. Any fees and commissions, less 3. Accrued interest of the quantity sold or redeemed The initial basis of a security transferred to an account is generally the basis reported on the transfer statement. Any security that is not covered by basis reporting rules or is not covered based on effective date. Specified Security A specified security is any share of stock (or interest treated as stock, such as an American Depositary Receipt) in an entity organized as, or treated for federal tax purposes as, a corporation (foreign or domestic). Wash Sale You cannot deduct losses from sales or trades of stocks or securities in a wash sale. Occurs when you sell securities at a loss and within 30 days before or after the sale you: Buy securities of the same CUSIP Acquire securities of the same CUSIP in a fully taxable trade Acquire a contract or option to buy securities of the same CUSIP Acquire securities of the same CUSIP for your individual retirement account (IRA) or Roth IRA If you sell stock, and your spouse or a corporation you control buys stock of the same CUSIP, you also have a wash sale. 21

Frequently Asked Questions on Form 1099 Tax Filing Why is there a difference between my LPL Financial monthly statements and what is reported to the IRS? LPL Financial must adhere to IRS requirements when reporting on Form 1099s. This may result in differences between what is on your monthly and quarterly statements and what is reported to the IRS. For example, mutual fund distributions declared as payable to shareholders of record in December 2013 and paid in January 2014 are taxable as 2013 distributions and reported on Form 1099-DIV. Why did I receive a corrected 1099? Mutual Funds and REITs may reclassify income after we issue your initial 1099 Consolidated Reporting Statement. When necessary, we will send you a corrected Form 1099-DIV to reflect reclassified information. In addition, you may receive a corrected 1099 if changes or updates are made to basis information. Due to the recent costbasis legislation described in this tax guide, the number of revised 1099s is expected to rise significantly. What are the tax implications of investing in a foreign security? Income from foreign securities or mutual funds that invest in foreign securities may be subject to a withholding tax by the country from which it was paid. Form 1099-DIV reports the gross amount of the dividend and the amount of foreign tax, if any, withheld at the source. You must report the gross amount of the dividend on your tax return; however, you may also be able to take a deduction or receive credit for taxes paid to a foreign country. In general, for dividends from a foreign corporation to be considered a qualified dividend, the foreign corporation paying the dividend must be incorporated in a U.S. possession, traded on a U.S. exchange, or incorporated in a country covered by a comprehensive tax treaty with the United States. For more information, consult your tax advisor or refer to IRS Publication 514, Foreign Tax Credit for Individuals. How should I treat accrued interest on bond purchases? Your Form 1099-INT reports the full interest payment credited to your account. To determine the amount of taxable interest, subtract the amount of accrued interest you paid at the time of purchase (found in the Non- Federally Reported Items section) from the full interest payment credited to your account. This calculation is performed on Form 1040, Schedule B, Interest and Ordinary Dividends. What tax forms will I receive on Direct Business Mutual Fund orders? If the liquidation * was placed through LPL Financial, you will receive IRS Form 1099-B from the mutual fund company (due to the ICI s response to the recent basisreporting rules), as well as IRS Form 1099-DIV or 1099- INT on any income payments received. * To verify where the liquidation occurred, please check your trade confirmation or contact your financial representative. The LPL Financial family of affiliated companies includes LPL Financial and UVEST Financial Services Group, Inc., each of which is a member of FINRA/SIPC. To the extent you are receiving investment advice from a separately registered independent advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity. Not FDIC/NCUA Insured Not Bank/Credit Union Guaranteed May Lose Value Not Guaranteed by any Government Agency Not a Bank/Credit Union Deposit OP-0004-0214 Tracking# 1-034483