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Understanding Your 2014 Fidelity Informational Tax Reporting Statement for Brokerage Accounts

Fidelity prepares Informational Tax Reporting Statements for corporate and non-prototype accounts that are generally exempt from IRS Form 1099 reporting. This guide provides detailed information to help you understand your Informational Tax Reporting Statement.

Fidelity's 2014 Informational Tax Reporting Statement has two parts:

  • Informational Tax Reporting Statement—Year-end account information as it would appear in a Fidelity Form 1099 tax reporting statement. It summarizes dividends (including exempt interest dividends), and other distributions, other income, and sales proceeds. This information is not reported to the IRS.
  • Detail Information—Additional information that you may find helpful, including transaction activity details. This information is not reported to the IRS.

The following sections of this guide explain the two parts of your 2014 Informational Tax Reporting Statement in greater detail. Sample statements are for illustrative purposes only. Certain categories of transactions may not pertain to your account.

Note: We base these statements on IRS information reporting requirements for individuals. However, you may be subject to different tax reporting requirements. Depending on your situation, this information on your Informational Tax Reporting Statement may not be accurate or appropriate for tax preparation purposes. We suggest that you consult your tax advisor before using any of this information for tax preparation.

While Fidelity does not generally send the information on your Informational Tax Reporting Statement to the IRS, we are required to report any regulatory 1099 account information. In such cases, we send a 1099 Tax Reporting Statement to you and the IRS.

Substitute payments in lieu of dividends for S and C corporations

If you received a substitute payment in lieu of dividends or tax exempt interest, you will receive a 1099 Tax Statement, including Form 1099-MISC, reporting these substitute payments to you and the IRS. Note: Fidelity is offering a credit adjustment to eligible individual shareholders who received certain substitute payments in lieu of qualified dividends. However, corporate account customers are not eligible for this credit adjustment.

If you are required to file a return, the IRS may impose a negligence penalty, or other sanction, if any income from an account for which you received an Informational Tax Reporting Statement is taxable and the IRS determines that the income has not been reported by you.

Transferred accounts

If your account was transferred to Fidelity in 2014, your Informational Tax Reporting Statement only includes activity from the time your account was established here. You may wish to contact your former clearing firm for information about any activity prior to the transfer.

Information for royalty trust shareholders

Beginning in March, royalty trust shareholders can access additional tax information on the Tax Statement Guides page.

Extraordinary dividend

In general, an extraordinary dividend is a dividend which exceeds 10% of your tax basis in your stock. If you received a dividend deemed as an extraordinary dividend on stock held in your account, subsequent losses realized on the sale of such stock may be treated as long-term capital losses to the extent of the extraordinary dividend regardless of how long you held the stock. If you believe you received an extraordinary dividend, you may want to consult with your tax advisor or see IRS Publication 550, Investment Income and Expenses (PDF).

Click on the number for a detailed explanation of that section.

Note: The following items are not illustrated on the above form but may appear in the Detail Information portion of your individual Informational Tax Reporting Statement.

Tax-exempt income from Fidelity funds 

This section lists exempt interest dividends from Fidelity municipal funds declared during 2014, and the amounts of those interest dividends that are attributable to in-state obligations and to out-of-state obligations. State tax rules for corporations may render some of these amounts inappropriate for use by corporations. Consult your tax advisor for more details.

Account fees 

This section lists the fees paid in 2014 from your account. We have listed these fees with the same descriptions that we used in your monthly/quarterly statements. Any fee amounts preceded by a minus sign indicate a fee reversal which we made in your account (including ATM fee rebates you received in your Fidelity® Cash Management Account).

Accrued interest paid on purchases 

This section lists accrued interest paid on purchases of bonds. Accrued interest paid when a bond purchase settles is not taxable to the buyer; instead, it is income that is taxable to the seller. Your Interest Income section reports the full interest payment credited to your account, including accrued interest paid.

Actual payment shortfall 

Due to IRS reporting requirements for widely held fixed investment trusts, this section reports your prorated share of the actual payment shortfall incurred by your royalty trust and/or HOLDRS trust. Actual Payment Shortfall is the difference between the actual contingent payment and the projected contingent payment from Contingent Payment Debt Instruments. See your tax advisor for more information.

Addition to basis 

Due to IRS reporting requirements for widely held fixed investment trusts, this section reports your prorated share of addition to basis incurred by your royalty trust and/or your HOLDRS trust. When the amount of principal reported exceeds the amount distributed to you, the difference is generally added to your cost basis.

Administrative expense 

Due to the IRS reporting requirements for widely held fixed investment trusts, this section reports your prorated share of administrative expense incurred by your royalty trust and/or your HOLDRS trust. These expenses have not been deducted from the gross royalty income reported in the Dividends and Distributions and/or the Miscellaneous Income sections of your statement. These expenses may be deductible, subject to applicable limitations. See your tax advisor for more information.

Generic expenses subject to 2% adjusted gross income (AGI) limitation 

Due to IRS reporting requirements for widely held fixed investment trusts, this section reports your prorated share of generic expenses subject to the 2% AGI Limitation incurred by your royalty trust and/or HOLDRS trust. These expenses are included in the gross income reported in the Dividends and Distributions and/or the Miscellaneous Income sections of your statement.

Generic expenses not subject to 2% adjusted gross income (AGI) limitation 

Due to IRS reporting requirements for widely held fixed investment trusts, this section reports your prorated share of generic expenses not subject to the 2% AGI Limitation incurred by your royalty trust and/or HOLDRS trust. These expenses are included in the gross income reported in the Dividends and Distributions and/or the Miscellaneous Income sections of your statement.

Margin interest paid 

This section lists margin interest paid by the account each month.

Severance tax 

Due to the IRS reporting requirements for widely held fixed investment trusts (WHFITs), this section reports your prorated share of severance tax paid by your royalty trust and/or your HOLDRS trust. Severance taxes are commonly imposed by states on the extraction of natural resources to be used out-of-state. We include these expenses in the royalty income reported in the Dividends and Distributions and/or the Miscellaneous Income sections, because, for WHFITs, following IRS regulations, we are required to report gross income without deducting expenses. These expenses may be deductible, subject to applicable limitations. See your tax advisor for more information.

  • What are the new IRS cost basis reporting regulations?

    Beginning with tax year 2011, the IRS expanded the cost basis reporting requirements for Form 1099-B, Proceeds from Broker and Barter Exchange Transactions. In accordance with the new IRS rules, Fidelity reports cost basis information for certain covered securities on Forms 1099-B (Proceeds from Broker and Barter Exchange Transactions). The IRS Form 1099-B is part of the non-exempt Fidelity Tax Reporting Statement and is also part of the information that we are required to report to the IRS. Your Informational Tax Reporting Statement reflects similar changes, because it presents tax information in a format similar to a non-exempt account statement. Whereas prior to tax year 2012 certain information appeared on either the Informational Tax Reporting Statement or on the (1099) Tax Statement, but not on both, this is no longer the case. As a result, we also include your information, reported on the 1099 Tax Statement, on the Informational Tax Reporting Statement. We report 1099 Tax Statement information to the IRS, even if it also appears on an Informational Tax Reporting Statement. We do not report any other information from an Informational Tax Reporting Statement to the IRS.

    Covered securities

    Generally, the new regulations define covered securities as:

    • 2011 – Stock in a corporation purchased on or after January 1, 2011 (not including stocks eligible for average basis).
    • 2012 – Shares of registered Investment Companies, including open-end mutual funds, and stocks acquired in dividend reinvestment plans purchased on or after January 1, 2012.
    • 2014 – Less complex debt securities that have a single fixed payment schedule as well as a maturity date, and were acquired on or after January 1, 2014. Equity options and Section 1256 options, as defined by the IRS, also qualify as covered securities as of the same acquisition date.
    • 2015 – Transfer statement reporting (for example, when you move your account from one firm to another) begins for all equity options and less complex debt securities.
    • 2016 – Complex debt instruments (acquired on or after January 1, 2016), including those with more than one stated rate of interest, convertible debt, stripped bonds or stripped coupons, non-dollar denominated debt, tax credit bonds, debt with a payment in kind (PIK) feature, foreign debt issued by a non-U.S. issuer, contingent payment debt, and inflation-indexed debt.
    • 2017 – Transfer statement reporting by brokers begins for all complex debt issues that are covered as of January 1, 2016.
  • Why is there a difference between what is reported in my Fidelity statements and what is reported in my Informational Tax Reporting Statement?

    We only provide Informational Tax Reporting Statements to customers who our records indicate are generally exempt from Form 1099 reporting. The information on the Informational Tax Reporting Statement that you receive is determined as though we were required to report to you under the IRS Form 1099 reporting requirements. These requirements differ in certain respects from the manner in which Fidelity reports to you through monthly, quarterly, and year-end statements. For example, while the IRS requires sales transactions to be reported based on the trade date (as reflected in your Informational Tax Reporting Statement), your Fidelity statements reflect sales based on the settlement date. In addition, following IRS requirements, we report the mutual fund distributions declared as payable to shareholders of record in October, November, or December 2014, and paid prior to February 1, 2015, in the 2014 Informational Tax Reporting Statement.

  • Is a corporation eligible to claim a dividends-received deduction with respect to qualified dividends reported in the Dividends and Distributions section of the Informational Tax Reporting Statement?

    Not necessarily. The qualified dividend distributions reported include distributions of qualified dividends received from foreign corporations (for which the dividends received deduction cannot be claimed). If you received a dividend distribution from a Fidelity mutual fund reported in line 1a in the Dividends and Distributions section of the Informational Tax Reporting Statement that may qualify for the corporate deduction for dividends received, in early March you will be able to see the Dividends-Received Deduction Information for Corporate Shareholders letter on the Fidelity Mutual Fund Tax Information page in Fidelity's Tax Center. This letter identifies the percentage of each dividend distribution from a Fidelity mutual fund reported in line 1a that is attributable to dividends received by the fund from domestic corporations and which may qualify for the corporate deduction for dividends received.

  • Are the amounts reported in the Tax–Exempt Income from Fidelity Funds section exempt from corporate income taxation?

    This income may be exempt from corporate income taxation at the federal level, yet subject to taxation at the state and/or local level. It also may be subject to the federal alternative minimum tax. Consult your tax advisor, who is most familiar with your tax situation and with the tax laws of your state and/or locality.

  • What are the primary tax implications of investing in foreign securities or owning mutual funds that invest in foreign securities?

    Dividends and interest earned on foreign securities may be subject to withholding tax by the country from which they were paid. If you held securities that paid dividends or interest that was subject to foreign tax, the Dividends and Distributions section and the Interest Income section report the gross amount of the dividends or interest (as applicable) and the amount of tax withheld at the source. You may be able to claim a credit or deduction on your federal tax return for the amount of tax paid to foreign countries.

    If you own a mutual fund that invests in foreign securities, the mutual fund may have paid taxes to foreign countries in respect of those securities. As a shareholder of that mutual fund, you may be able to claim a credit or a deduction on your federal tax return for a portion of those foreign taxes. The Dividends and Distributions section of your Informational Tax Reporting Statement reports the gross amount of the dividends you received (including the foreign tax amount) and the amount of foreign tax (if any) that you may be able to claim as a credit or a deduction. For more details on claiming a foreign tax credit for Fidelity funds that distributed income from foreign investments, in late February you will be able to see the Important Information for Corporate Investors about Foreign Tax Paid letter on the Fidelity Mutual Fund Tax Information page in Fidelity's Tax Center. You may also want to consult your tax advisor or refer to IRS Instructions for Form 1118, Foreign Tax Credit — Corporations.

  • I used a foreign currency to purchase a security. Now I see that I have a detail information section reporting Currency Gain/Loss. What is this section reporting?

    This section reports in United States dollars (USD) the estimated gain/loss on the foreign currency position that you disposed of in the security purchase. When you acquired that foreign currency position, a USD cost basis was established in that position (see the description of the Currency Realized Gain/Loss section in this web guide and the footnotes on that section of your statement) and, based on changes in exchange rates between that time and the time of the security purchase, you experienced a gain or loss in the USD value of that foreign currency position which you realized when you used the foreign currency position to purchase the security.

  • How is accrued interest on bond purchases reported in this Informational Tax Reporting Statement?

    The Interest Income section reports the interest payments on a cash basis and includes any interest you paid to the seller when you purchased the bond. We report accrued interest separately in the Accrued Interest Paid on Purchases section. For tax reporting, you may need to adjust for interest included when you purchased the bond.

  • How are my short sales reported?

    Starting in 2011, the IRS requires us to report short sales in a new way. Any short sale entered into in 2011 or later will not be reported in your Informational Tax Reporting Statement until you have closed the short sale. In most cases, this section will show the date that you closed the short sale, the acquisition date of the security used to close the short sale, and the adjusted basis of the security used to close the short sale. If you closed a short sale in 2014 that was opened prior to 2011, this transaction will not appear on your 2014 Proceeds from Broker and Barter Exchange Transactions section, but it will appear in the detail Long-Term Realized Gain/Loss section. Tax reporting rules may be different for corporations and other non-individual taxpayers. For more information on short sales, see IRS Publication 550, Investment Income and Expenses, or consult your tax advisor.

  • Why are interest payments or distributions on my limited partnership missing?

    If you held a limited partnership in 2014, the partnership will provide a Schedule K-1.

Additional information

eDelivery for tax statements is now available
Now you can get your tax statements as soon as they are available with eDelivery. Signing up is quick and easy. Once you've enrolled for eDelivery, you'll receive an email notification when your tax statements are available online. Online statements are official copies of your tax forms, and you can access old tax forms online, starting with your 2009 tax forms. For more information about eDelivery, please contact a Fidelity investment professional.

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Dividends and Distributions

Lists all taxable dividends, long-term capital gain distributions, nondividend distributions, certain investment expenses, foreign tax paid, exempt interest dividends, and private activity bond interest dividends (mainly from mutual funds or other regulated investment companies). These amounts may include dividends and/or distributions from the mutual fund you use as your core money market fund. The exempt interest dividends, reported on line 10, include specified private activity bond interest dividends from line 11, if any. For more information, see the IRS Instructions for Form 4626, Alternative Minimum Tax-Corporations (PDF).

We report all dividends in U.S. dollars (USD). If the dividends that you received were paid in a currency other than USD, we convert the foreign currency dividends into USD and report the USD-equivalent in the Dividends and Distributions section of the tax statement.

The dividend amounts that we report may be higher than the amounts that you actually received. For example, if foreign tax was paid, the amount that you may be able to claim as a deduction or credit is reported in line 6 of the Dividends and Distributions section, and that amount is also included in the dividend amount reported in line 1a and, if applicable, line 1b. For additional 2014 foreign tax credit pass-through information for Fidelity mutual funds, in early February you will be able to see the Important Information for Corporate Investors about Foreign Tax Paid letter on Fidelity's Mutual Fund Tax Information page.

IRS reporting requirements governing widely held fixed investment trusts (WHFITs) are another situation where Fidelity may report a dividend amount higher than the amount you may have received. If you owned certain HOLDRS trusts, Fidelity reports investment expenses on line 5. We also include those expenses in the dividends reported in line 1a, because, for the normal tax reporting which we are mimicking here, we are required to report such trust dividends including expenses. Investment expenses may be deductible, subject to applicable limitations. For more information, see IRS Publication 550, Investment Income and Expenses (PDF), or consult your tax advisor.

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Interest Income

Lists all interest earned on government and corporate debt obligations and short-term certificates of deposit, as well as interest earned from cash in your account.

We present Interest Income details in three subsections: Interest Income Details, Tax-Exempt Obligations; Interest Income Details, Taxable Obligations; and Interest Income Details, Investment Expenses and Withholding. These subsections will only appear if they apply to the amounts reported on your 1099-INT.

As part of the 2014 cost basis regulations, we are now reporting Bond Premium, and Market Discount on 1099 INT. These amounts were previously reported in the Supplemental Realized Gain/Loss sections.

Line 8 reports tax-exempt interest from individual securities, but not from mutual funds or other regulated investment companies. We report those tax-exempt interest dividends in the Dividends and Distributions section.

Line 9 reports any applicable specified private activity bond interest. Specified private activity bond interest must be taken into account in computing the federal alternative minimum tax (AMT). The tax–exempt interest reported on line 8 includes this specified private activity bond interest, if any. For more information, see the IRS Instructions for Form 4626, Alternative Minimum Tax—Corporations (PDF).

Line 12 shows the CUSIP number for the tax-exempt security on which tax-exempt interest was paid to you during the calendar year and reported on line 8. In cases in which we are reporting tax-exempt interest from more than one CUSIP, the line is marked "various." To help make your state tax filing a little easier, we have reformatted this section so tax-exempt bonds are now categorized by state.

We report all interest in U.S. dollars (USD). If the interest that you received was paid in a currency other than USD, we convert the foreign currency interest into USD and report the USD-equivalent.

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Miscellaneous Income

Lists other reportable income, such as royalty payments from grantor trusts or from timber, coal, or iron ore. Even if you are an exempt recipient for 1099 tax reporting purposes, certain types of income are still required to be reported on an official tax form to both you and the IRS. For example, if you received a substitute payment in lieu of dividends or tax-exempt interest, we are required to report it to you and the IRS on line 8 of Form 1099-MISC (part of the 1099 Tax Reporting Statement). You would receive that Form 1099-MISC separately from your Informational Tax Reporting Statement. As was the case last year, you will find this information on both your Informational Tax Reporting Statement and your 1099 Tax Statement.

Due to IRS reporting requirements governing widely held fixed investment trusts, if you owned certain royalty or HOLDRS trusts, Fidelity reports various expenses, as well as adjustments which affect the estimated cost basis of your shares, in the applicable supplemental sections of your Informational Tax Reporting Statement. We also include your pro-rated share of those expenses in the royalties line (line 2), because we are required to report your royalties before expenses were subtracted (of course, we do not report any of the data in this informational statement to the IRS). For this reason, the royalties reported on the form may be greater than the amount that you actually received. Investment expenses may be deductible, subject to applicable limitations.

In addition, beginning in March, Fidelity will post additional tax information for royalty trust shareholders on the Tax Statement Guides page. For more information, see IRS Publication 550, Investment Income and Expenses (PDF), or consult your tax advisor.

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Summary of Proceeds from Broker and Barter Exchange Transactions

Lists gross proceeds less commissions from sales. Beginning January 1, 2014, gross proceeds will also be adjusted for option premiums from option contracts purchased and subsequently closed after that date.

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Summary of Original Issue Discount

Lists the Original Issue Discount (OID) that you must report for the current year. OID reports the earned portion of the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a bond, debenture, note, or other evidence of indebtedness issued at a discount (e.g., zero-coupon bond, long-term CD) that is attributable to the selected tax year. OID on Treasury obligations, listed in Column 8, is exempt from state and local income taxes. If you hold collateralized debt obligations (CDO), which include real estate mortgage investment conduits (REMIC) and collateralized mortgage obligations (CMO), you may receive a separate 1099-OID form in March to report this OID. You may need to make certain adjustments to this information. Consult your tax advisor or see IRS Publication 1212 Guide to Original Issue Discount (OID) Instruments (PDF) for more specific reporting information.

As part of the 2014 Cost Basis Legislation (CBL) changes, there are two new fields on Form 1099-OID: Market Discount (5), and Acquisition Premium(6).

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Proceeds from Broker and Barter Exchange Transactions

The Proceeds from Broker and Barter Exchange Transactions section lists all proceeds from the sale or other disposition of stocks, bonds, mutual funds, subscription rights expiring with a cash equivalent, taxable tenders and mergers, and short sales if opened no earlier than 2011 and closed in 2014. We have modified non-exempt account IRS Cost Basis reporting to meet the needs of exempt reporting. As a result, we separate your proceeds information into up to four subsections: Short-Term Transaction, Long-Term Transactions, Transactions for Which Term is Unknown, and Section 1256 Options Contracts. The section detailing your 1256 options (also known as broad-based market index options) is new in 2014, in accordance with new cost basis regulations.

Much of your cost basis information* for redemptions, sales, etc. is likely to appear in one of these sections. However, some cost basis information still appears, if applicable, in the Realized Gain/Loss sections of your statement. This would include complex debt transactions requiring cost basis adjustments, noncovered options transactions, and transactions made in a foreign currency. Here is a summary of where you will find transaction information for various kinds of securities.

Type of security Location of cost basis information in your tax statement
  • Equities
  • Mutual funds and other securities in dividend reinvestment plans
  • Less complex debt
  • Short sales opened in 2011–2014, and closed during 2014
  • Covered option contracts
Proceeds from Broker and Barter Exchange Transactions section only
  • Foreign equities
  • Foreign fixed-income securities
  • Complex debt
Proceeds from Broker and Barter Exchange Transactions section. Additional information is also provided in the Realized Gain/Loss sections of the Detail pages.
  • Noncovered option contracts
  • Short sales, opened prior to 2011 and closed in 2014
  • Foreign currency transactions
Detail Realized Gain/Loss sections only

We report all transactions on a trade-date basis and they are the net amount after commissions. The cost basis reported reflects certain adjustments, if applicable. If you are required to file a federal tax return, you may be required to make additional adjustments to properly calculate your taxable gain/loss.

Mutual funds and other securities in dividend reinvestment plans (DRIPs)—bifurcation of information

Fidelity follows IRS rules for calculating average cost basis for mutual funds and other securities in certain DRIPs. Due to cost basis reporting regulations for non-exempt accounts, Fidelity tracks separately average cost for positions, covered by the IRS Cost Basis Requirements and noncovered mutual fund and DRIP positions. Positions, using the average cost calculation method, that include both noncovered and covered shares are considered bifurcated. As such, these positions comprise the following:

  • Shares acquired prior to January 1, 2012
  • Additional share purchases that occur on or after January 1, 2012, of the same mutual fund

For mutual fund positions that are considered bifurcated:

  • The average cost basis for covered and noncovered lots is calculated separately.

Reporting short sales. The IRS generally requires shareholders to report all short sales in the year that the short sale is closed. This is not a change from prior years. For tax years 2011 and beyond, new IRS rules require us to follow those same rules. Before tax year 2011, we reported short sales when they were opened. We generally report all short sales (when closed) in the Proceeds From Broker and Barter Exchange Transactions section. Short sales opened prior to 2011 and closed in 2014 are an exception to this rule. We report those transactionsin the detail Realized Gain/Loss sections. In this way for reportable accounts, we will avoid reporting the same short sale twice to the IRS.

Transactions using foreign currency. In this section, we report all proceeds in U.S. dollars (USD). If the proceeds that you received from a transaction were paid in a currency other than USD, we convert those foreign currency proceeds into USD based on exchange rates on the trade date of the transaction and report those USD-equivalent proceeds. If you have made such transactions, we provide additional information in the footnotes attached to the Realized Gain/Loss sections of the Detail Information pages of this statement.

* Fidelity will report applicable gross proceeds, as well as certain cost basis and holding period information, to you and to the IRS on Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for tax reporting purposes. However, other than S corporation accounts, accounts receiving an Informational Tax Reporting Statement are categorized as exempt from IRS reporting. Account holders should verify Fidelity-provided cost basis and holding period information in the Proceeds from Broker Transactions and/or the Realized Gain/Loss sections of their Informational Tax Reporting Statements when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first in, first out (FIFO) method for all other securities. Consult your tax advisor for further information.
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Details of Dividends and Distributions Transactions

We present Dividends and Distributions details in three subsections: Total Ordinary Dividends and Distributions Detail; Total Capital Gains Distributions Detail; and Other Distributions, Tax, and Expense Detail. Each subsection appears only if it applies to the transactions reported in the Dividends and Distributions section on the first page of your statement.

We identify the short-term capital gain distributions portion of ordinary dividend distributions in this section. Generally, short-term capital gain distributions are nonqualified dividends, and as such, are taxed as ordinary income. However, a portion of the short-term capital gain distribution may be a qualified dividend and subject to one of the lower federal long-term capital gain tax rates. Any portion of the short-term capital gain distribution that is potentially subject to one of the lower tax rates is included as qualified dividends in line 1b.

A portion of line 1a may be eligible for the deduction for dividends received from domestic corporations under Internal Revenue Code Section 243. If you received a dividend from a Fidelity mutual fund which may qualify for the corporate deduction for dividends received, in mid-February you will be able to see the Dividends-Received Deduction Information for Corporate Shareholders letter on the Fidelity Mutual Fund Tax Information page in Fidelity's Tax Center. This letter identifies the percentage of each dividend distribution from a Fidelity mutual fund reported in line 1a that is attributable to dividends received by the fund from domestic corporations and which may qualify for the corporate deduction for dividends received. We also list tax-exempt interest dividend details in this section, transaction by transaction.

If we report foreign tax on line 6, then that amount is also included in the dividends reported on line 1a and, if applicable, line 1b. For mutual funds, you will see such individual foreign tax entries (line 6) as part or all of certain matching individual entries for lines 1a and 1b. For individual securities we do not give such a payment-by-payment accounting. If a foreign tax was paid, the amount that you may be able to claim as a deduction or credit is reported in line 6. For additional 2014 foreign tax credit pass-through information for Fidelity mutual funds, see the Tax Information for Corporate Investors about Foreign Tax Paid letter on the Fidelity Mutual Fund Tax Information page.

We report all dividends in U.S. dollars (USD). If the dividends that you received were paid in a currency other than USD, we convert the foreign currency dividends into USD and report the USD equivalent in the Details of Dividends and Distributions Transactions.

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Total Capital Gains Distributions Detail

Total Capital Gain Distributions (2a) may include, if applicable, Unrecaptured Section 1250 Gain (2b), Section 1202 (28%) Gain (2c), and Gains from Collectibles (28%) (2d). The portion of Capital Gain Distributions subject to 15% Rate Gain is equal to (2a) less amounts shown in columns (2b) through (2d). We have added a separate column, listing these 15% rate gain details to the 2014 Total Capital Gains Distributions Detail section.

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Other Distributions, Tax and Expense Detail

The amount of any non-dividend distributions (line 3) you receive will generally reduce your basis for the applicable security by the same amount. If you owned certain HOLDRS trusts, Fidelity reports the investment expense details for expenses reported on line 5. Due to IRS reporting requirements governing widely held fixed investment trusts, we also include those expenses in the dividends that we report. For this reason, the total reported gross dividends may be higher than the amount that you actually received. Investment expenses are generally deductible, subject to applicable limitations.

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Interest Income Detail

We present details of Interest Income transactions in three subsections: Interest Income Details, Tax-Exempt Obligations; Interest Income Details, Taxable Obligations; and Interest Income Details, Investment Expenses and Withholding. These individual subsections appear only if they apply to the amounts reported in your Interest Income section on the first page of your statement. We show Interest Income (1) (a combination of Interest Payments received, Accrued Interest received on the Sale of Bonds, and OID Paid to you on Short-Term Instruments) as well as Tax-Exempt Interest (8), Specified Private Activity Bond Interest (9), and Foreign Tax Paid (6) details in this subsection. Any Specified Private Activity Bond Interest (9) amounts are also included in the Tax-Exempt Interest (8) column. Generally Specified Private Activity Bond Interest must be included in the calculation of alternative minimum tax (AMT). We also show Interest on U.S. Savings Bonds and Treasury Obligations (3) (a combination of Interest Payments on Treasury Bonds and Notes, Accrued Interest received on the Sale of Treasury Instruments, and U.S. T-Bill Interest received) in this section. As part of the 2014 cost basis regulations, we are now reporting Bond Premium and Market Discount on 1099 INT. These amounts were previously reported in the Supplemental Realized Gain/Loss sections.

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Details of Miscellaneous Income Transactions

This section lists any royalty or HOLDRS trust income earned in your account. Due to IRS reporting requirements governing widely held fixed investment trusts, if you owned certain royalty or HOLDRS trusts, Fidelity reports various expenses, as well as adjustments which affect the estimated cost basis of your shares, in the applicable detail information sections of your Informational Tax Reporting Statement. We also include your pro-rated share of those expenses in the Royalties line (line 2), because we report your royalties before expenses were subtracted. For this reason, the royalties reported on the statement may be greater than the amount that you actually received. Investment expenses may be deductible, subject to applicable limitations.

In addition, Fidelity will post additional royalty trust information on the Tax Statements Guide page.

For more information, see IRS Publication 550, Investment Income and Expenses (PDF), or consult your tax advisor.

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Short-Term Realized Gain/Loss

Due to new IRS cost basis reporting rules, certain aspects of Fidelity's cost basis reporting* changed, beginning with tax year 2011. For further information, see "Filing Requirements and IRS Reporting" as well as the description of the Proceeds from Broker and Barter Exchange Transactions section, earlier in this guide, for further information.

Here is a summary of where you will find transaction information for various kinds of securities.

Type of security Location of cost basis information in your tax statement
  • Equities
  • Mutual funds and other securities in dividend reinvestment plans
  • Less complex debt
  • Short sales opened in 2011–2014 and closed during 2014
  • Covered option contracts
Proceeds from Broker and Barter Exchange Transactions section only
  • Foreign equities
  • Foreign Fixed-income securities
  • Complex debt
Proceeds from Broker and Barter Exchange Transactions section. Additional information is provided in the Realized Gain/Loss sections of the Detail pages.
  • Noncovered option contracts
  • Short sales, opened prior to 2011 and closed in 2013
  • Foreign currency transactions
Detail Realized Gain/Loss sections only

If you purchased a security in a foreign currency, then following its sale or disposition, this section provides both the cost in that currency and the estimated U.S. dollar (USD) cost basis in the "Cost Basis" column (determined based on the USD equivalent of the foreign currency cost as of the trade date of purchase). If you sold a security in a foreign currency, this section provides both the foreign currency proceeds and the USD-equivalent of those foreign currency proceeds (as of the trade date of the sale) in the Proceeds column. See the footnotes on this section of your statement for additional information about our calculations of USD proceeds and USD cost basis in connection with these types of transactions.

If you sold or otherwise disposed of a debt instrument that is denominated in a currency other than USD or that makes a payment calculated by reference to the value of a currency other than USD, certain tax rules may require you to treat as ordinary income/loss all or a portion of your realized gain/loss. Consult your tax advisor for more information regarding reporting of transactions made in a foreign currency.

* Fidelity will report gross proceeds, as well as certain cost basis and holding period information, to you and to the IRS on Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for tax reporting purposes. However, accounts receiving an Informational Tax Reporting Statement are categorized as exempt from IRS reporting. Account holders should verify Fidelity-provided cost basis and holding period information in the Proceeds from Broker Transactions and/or the Realized Gain/Loss sections of their Informational Tax Reporting Statement when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first in, first out (FIFO) method for all other securities. Consult your tax advisor for further information.
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Long-Term Realized Gain/Loss

Due to new IRS cost basis reporting rules, certain aspects of Fidelity's cost basis reporting* changed, beginning with tax year 2011. See "Filing Requirements and IRS Reporting" as well as the description of the Proceeds from Broker and Barter Exchange Transactions section, earlier in this guide, for further information.

Here is a summary of where you will find transaction information for various kinds of securities.

Type of security Location of cost basis information in your tax statement
  • Equities
  • Mutual funds and other securities in dividend reinvestment plans
  • Less complex debt
  • Short sales opened in 2011–2014 and closed during 2014
  • Covered option contracts
Proceeds from Broker and Barter Exchange Transactions section only
  • Foreign equities
  • Foreign Fixed-income securities
  • Complex debt
Proceeds from Broker and Barter Exchange Transactions section. Additional information is provided in the Realized Gain/Loss sections of the Detail pages.
  • Noncovered option contracts
  • Short sales, opened prior to 2011 and closed in 2014
  • Foreign currency transactions
Detail Realized Gain/Loss sections only

If you purchased a security in a foreign currency, then following its sale or disposition, this section provides both the cost in that currency and the estimated U.S. dollar (USD) cost basis in the "Cost Basis" column (determined based on the USD equivalent of the foreign currency cost as of the trade date of purchase). If you sold a security in a foreign currency, this section provides both the foreign currency proceeds and the USD-equivalent of those foreign currency proceeds (as of the trade date of the sale) in the Proceeds column. See the footnotes on this section of your statement for additional information about our calculations of USD proceeds and USD cost basis in connection with these types of transactions.

If you sold or otherwise disposed of a debt instrument that is denominated in a currency other than USD or that makes a payment calculated by reference to the value of a currency other than USD, certain tax rules may require you to treat as ordinary income/loss all or a portion of your realized gain/loss. Consult your tax advisor for more information regarding reporting of transactions made in a foreign currency.

*Fidelity will report gross proceeds, as well as certain cost basis and holding period information, to you and to the IRS on Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for tax reporting purposes. However, accounts receiving an Informational Tax Reporting Statement are categorized as exempt from IRS reporting. Account holders should verify Fidelity-provided cost basis and holding period information in the Proceeds from Broker Transactions and/or the Realized Gain/Loss sections of their Informational Tax Reporting Statement when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first in, first out (FIFO) method for all other securities. Consult your tax advisor for further information.
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Currency Realized Gain/Loss

This section of your statement provides information regarding certain transactions in which a customer disposes of foreign currency, namely exchanges of foreign currency for U.S. dollars (USD), exchanges of foreign currency for a security, and exchanges of foreign currency for a different foreign currency. It provides estimated cost basis*, proceeds, and gain/loss information for the currency disposed of in any of the foregoing transactions. Under certain tax rules, gain/loss realized on these types of transactions may be treated as ordinary income/loss.

If you originally acquired the foreign currency in exchange for USD, then the estimated cost basis we provided in this section is generally that USD purchase price. If you originally acquired the foreign currency in exchange for another foreign currency, then we determined the estimated cost basis by converting the foreign currency purchase price into USD based on exchange rates on the trade date of the purchase. If you originally acquired the foreign currency in another type of taxable transaction (e.g., as proceeds from the sale of the security or as a dividend), then we determined the estimated cost basis by converting the foreign currency into USD based on exchange rates on the date of that earlier transaction.

If you sold the currency in exchange for USD, then the proceeds in this section are those USD proceeds. If you used the foreign currency to purchase a security or another foreign currency, then we determined the proceeds by converting the disposed currency into USD based on exchange rates on the trade date of that transaction.

See the footnotes on this section of your statement for additional information about our calculations of USD proceeds and USD cost basis in connection with these types of transactions.

* Fidelity will report gross proceeds, as well as certain cost basis and holding period information, to you and to the IRS on Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for tax reporting purposes. However, accounts receiving an Informational Tax Reporting Statement are categorized as exempt from IRS reporting. Account holders should verify Fidelity-provided cost basis and holding period information in the Proceeds from Broker Transactions and/or the Realized Gain/Loss sections of their Informational Tax Reporting Statements when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first-in, first-out (FIFO) method for all other securities. Consult your tax advisor for further information.
The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Fidelity makes no warranties with regard to such information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.
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See Intuit’s terms of service.

GainsKeeper®
The use of GainsKeeper branded products is governed by Wolters Kluwer Financial Services (Wolters Kluwer) applicable license agreements. GainsKeeper and the GainsKeeper logo are registered trademarks and/or service marks of Wolters Kluwer. Wolters Kluwer is not affiliated with Fidelity Brokerage Services (FBS) or their affiliates. Wolters Kluwer is solely responsible for the information, content and software products provided by it. Fidelity does not explicitly or implicitly endorse or approve such information, content or products. Fidelity cannot guarantee that such information and content supplied is accurate, complete, or timely, or that the software products provided produce accurate and/or complete results. Fidelity does not make any warranties with regard to the information, content or software products or the results obtained by their use. Fidelity disclaims any liability arising out of your use (or the results obtained from, interpretations made as a result of, or any tax position taken in reliance on information provided pursuant to, your use) of these Wolters Kluwer software products or the information or content furnished by Wolters Kluwer.

TradeLog®
The use of TradeLog branded products is governed by Armen Computing Ltd. (Armen) applicable license agreements. TradeLog and the TradeLog logo are registered trademarks and/or service marks of Amren. Armen is not affiliated with Fidelity Brokerage Services (FBS) or their affiliates. Armen is solely responsible for the information, content and software products provided by it. Fidelity does not explicitly or implicitly endorse or approve such information, content or products. Fidelity cannot guarantee that such information and content supplied is accurate, complete, or timely, or that the software products provided produce accurate and/or complete results. Fidelity does not make any warranties with regard to the information, content or software products or the results obtained by their use. Fidelity disclaims any liability arising out of your use (or the results obtained from, interpretations made as a result of, or any tax position taken in reliance on information provided pursuant to, your use) of these Armen software products or the information or content furnished by Armen.

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