Fidelity's 2014 Informational Tax Reporting Statement has two parts:
- Informational Tax Reporting Statement—The year-end account information as it would appear in a Fidelity Form 1099 Tax Reporting Statement. It summarizes dividends (including exempt-interest dividends), other distributions, and sales proceeds. This information is not reported to the IRS.
- Detail Information—Additional information that you may find helpful. This information is not reported to the IRS.
We base the Informational Tax Reporting Statement on general IRS information reporting requirements for individuals. You may be subject to different tax reporting requirements. Depending on your situation, the information in 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.
Sample statements are for illustrative purposes only. Certain categories of transactions may not pertain to your account.
The Dividends and Distribution section lists all taxable dividends, long-term capital gain distributions, and nondividend distributions from mutual funds held in your account. Columns 10 and 11 report mutual fund tax-exempt interest dividend and private activity bond interest dividends. Specified private activity bond interest must be taken into account in computing the federal alternative minimum tax (AMT). The tax-exempt interest reported in column 10 includes these specified private activity bond interest dividends, if any. For more information, see the IRS Instructions for Form 4626, Alternative Minimum Tax—Corporations (PDF).
If an Unrecaptured Section 1250 gain, Section 1202 gain, or Collectibles (28%) gain was distributed, lines 2b, 2c, and/or 2d will appear, respectively, in this section. If your fund paid foreign tax, we report the amount that you may be able to claim as a deduction or credit in column 6. We add the foreign tax paid to the dividend amount you received and report the total in column 1a and, if applicable, column 1b. For this reason, the total dividends reported on the statement may be higher than the amount that you actually received.
For additional 2014 foreign tax credit pass-through information, in early February you will be able to see the Tax Information for Corporate Investors About Foreign Tax Paid letter on Fidelity's Mutual Fund Tax Information page.
A portion of column 1a—Total Ordinary Dividends—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 Fidelity's Mutual Fund Tax Information page. This letter identifies the percentage of each dividend distribution from a Fidelity mutual fund reported in column 1a that is attributable to dividends received by the fund from domestic corporations and which may qualify for the corporate deduction for dividends received.
The Proceeds From Broker and Barter Exchange Transactions section reports your proceeds information in up to three subsections; Short-Term Transactions, Long-Term Transactions, and Transactions for Which Term Is Unknown. For your Fidelity Funds account, your cost basis information for redemptions, sales, etc. will appear in one of these sections.
We report all transactions on a trade-date basis, and we report the proceeds as gross proceeds. If you are required to file a federal tax return, you will generally be required to provide the adjusted basis for the shares sold, in order to determine the associated realized gain or loss. Fidelity provides estimated cost basis, realized gain and loss, and holding period information in one of the subsections, listed above.* If your account also has reportable Form 1099-B information, we will also present that information in this section of your Informational Tax Reporting Statement.
Bifurcation of cost basis information
Fidelity follows IRS rules for calculating average cost basis for mutual funds. Due to the cost basis reporting regulations for non-exempt accounts, Fidelity tracks separately average cost for "covered" and "noncovered" Fidelity mutual fund shares. Positions, using the average cost calculation method, that include both noncovered and covered shares are considered bifurcated. As such, these positions comprise the following:
- Fidelity mutual fund 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 we calculate the average cost basis for covered and noncovered lots separately.
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.