EFTA01221804.pdf

RECOMk JAN 08 2013 Morgan Securities Important Information Regarding Form 1099 Tax Reporting Changes for 2012 YOUR 1099 FORMS WILL BE POSTMARKED ON OR ABOUT FEBRUARY 15, 2013 As the result of legislation enacted by the D.S. Congress. as part of their Securities that are purchased before the effective dates are annual tax reporting process. brokers are required to report cost basis generally considered "noncovered" securities. Tor the sale or information to the Internal Revenue Service (IRS) beginning with tax exchange of noncovered securities, brokers are not required to report year 2011. The cost basis reporting law is phased in over multiple years. cost basis information to you or the IRS. Instead. the broker is only Generally, brokers are required to report cost basis on securities that required to report gross proceeds and related information and is similar are purchased on or after the below effective dates: to reporting prior to January I, 2011. ► January 1, 2011 - stock in a corporation: What's new on Form 1099-B for 2012: ► January 1.2012 - certain mutual funds and similar securities Short Sales The IRS instituted the below changes in regards to short that are classified as Regulated Investment Companies ("Ks") and sale reporting, which have been incorporated into Form 1099-B: shares purchased or acquired in connection with qualified dividend reinvestment plans; and ► Box la: Date the security was delivered to close the short sale (settlement date of closing transaction). ► January 1.2014 - certain options and debt securities ► Box Ib: Acquisition date of the security delivered to close the short sale (trade date of closing transaction). Generally, securities that are purchased or acquired after the effective date are considered "covered" securities and are subject ► Box Ic: Whether any gain or loss on the closing of the short sale to cost basis reporting. The broker is required to report cost basis is short-term or long-term based on the acquisition date of the information to you and the IRS. Information reported on the Form security delivered to close the short sale. 1099-B to you and the IRS includes: Regulatory ► Gross proceeds, the cost basis, and holding period for covered ► As of January I. 2012, shares in Regulated Investment Companies securities and certain dividend reinvestment plans are deemed "covered" ► Any wash sale adjustments required for reporting by the new law. securities and subject to cost basis reporting A "wash sale" deferral and adjustment generally results when ► New boxes have been added to Form 1099-13 for stock or other a taxpayer sells a security at a loss and reacquires the identical symbol (box Id). quantity (box le). and whether basis is being security in the same account within 30 days of the loss. The broker reported to the IRS (box 6b). Other boxes on the form have been is required to adjust the basis and holding period of the reacquired moved or renumbered. security for the wash sale deferral. ► Date of sale or exchange and date of acquisition PREVIEW OF 2012 FORM 1099-B ENHANCEMENTS Summary Totals ► New table of summary totals added at the beginning of the form' ► Layout updated to include details that can be used to complete 89492 Realized Gain Wash Sale loss Proceeds Cost and Loss Disallowed TaW Noucoveed Traction Proceeds Si 26,132 95 Form 8949, Pan I (Short Term) TO Covered Brat Tern eau / Loss (Cost Bass Reported to IRS: Box A Cireckedi 56S6,625.0) 5665555.0) (5330.00) 54.3750) Tote Nevi:Aired Star Tenn Gan r Loss (Cost Bass NOT Reported o IRS; Box B Cmctet) 5423,25000 5423,762 0) (5512.0)) Form 8949, Part II (Long Term) Tortt Covrei Loop Tern Gar I Loss (Cost Bass Rtdriodd %a IRS. Bo( A CrecTed) 5276 600 0) 561445.50 5'7.M4 50 54 2)0 0) Tod Norcoveed Lon Tem Or/ Loss (Cost Bass NOT Repred to IRS, Box 8 C•eckea) 5405,45080 5293,55).0) 5'350)0) ' Total WO. Realiied Gain (lois/. and holding period information may not (Oleo all adjustments necessary for tax reporting purposes. Taxpayers are ultimately responsible lot the accuracy 01 their tax returns and should verily such inlormation against their own records when calculating reportable gain or loss resulting Iron a sale. redemption. or exchange. ? Please consult your tax advisor (or details on how to complete Form 8949. EFTA01221804 Noncovered Cost Basis Sections3 ► New Short Term and Long Term noncovered sections added ► Cost basis provided for noncovered securities - .IPMCC does not report such information to the IRS Example Form 1099-B Short Term Noncovered Section ACTIONS OMB NO.1545.0715) Noncovered Short Term Gain or Loss - Cost Basis NOT reported to IRS Box 6a: Noncovered Security Box 6b: Box Ic: Type of Gain or Loss: Short Term Repo' ( on Form 8949, Part I, with Box B checked (Boa la) Max lb) Box al (Box teb (Box lei Box 2a) Mos 3) (BOX 5) Moe 4) (Box Xs) S)oboi Gross Proceeds Len • Wash Sale federal Dale of Sale or • Dale of C00111115,100 and • C011 or Lon Income Tat Loss Nol • REALIZED Exchange Acquisition Boynton CUSiP Cluartly Option Premium Mier Bab Disallowed Withheld Alloaed GAINS LOSS 3:1700(2 9192011 PLICO TOTAL RETIO.'i PC" 3:t."; 755(0 8,250(0 7,750.00 SCOW US USTED 9162512 8/90011 PACO TOTAL RETURN FN)A3Ver %Noce 11,050(0 11,250.00 í250,C0) U5 USTED 9112012 94(2011 5MR SW 5(0 ET( SER I 1,50300 2C4,053.00 207,2X CO (3,250.00) SHORT SALE Example Form 1099-B Long Term Noncovered Section Noncovered Long Term Gain or Loss - Cost Basis NOT reported to IRS Box 6a: Noncovered Security Box 6b: Box lc: Type of Gain or Loss: Long Term Report on Form 8949, Part II, with Box B checked Box (a) (Box lb) (Box 8) (Box id) (Box le) (Box 74 (Doi 7) Mo. I) lBox 4) (Box lel Symbol Gross Proceed‚ Len • Wash Sale Federal Date of Sale or • Dakar Commission and 'Color Loos Income Tax Loss Not • PSAL1110 Exchange Acquisition Description CUSP Quantity Option Premium Cu Bab Oisallomd Wahhcld Aliened GAIN I LOSS 3/17/N12 0002/10 JOHNSON S JCUNSON 75005 51,750,05 E 49,50 CO 2.250.00 101310012 SA0010 SPOR GOLD SHARES X0.03 SS,SCO.00 61,503.03 LOCO CO 12,803.00) 114/2012 S Etmar2(.09 SPOR 50503 ETF KR I 1,003.03 136,0:000 (22,003.03 1 14p00.03 'Noncovered cost basis information that is not reported to the IRS should be verified against your records when calculating reportable gain or loss resulting from a sale. redemption. or exchange. EFTA01221805 New Indicators and Columns ► New indicators added to the form, e.g. wash sales ► Format enhanced with the addition of a "Realized Gain/Loss" column Example Form 1099-B Short Term Covered Section : CHANGE TRANSACTIONS (OMB NO. 1545.0715) Covered Short Term Gain or Loss - Cost Basis Reported to IRS Box 6a: Box 6b: Basis Reported to IRS Box It: Type of Gain or Loss: Short Term Report on Form 8949, Part I, with Box A checked (Box la) (Box lb) Ifin 1) (Box Id) !Box le) On 14) Wini 31 an 5) IBM Box 10) Signhol Gr033 PIOCUOS Lon Wash Sale federal Dale of Sate or Dale of Commission and Con or loss Income fax loaf Hol • REALIZED Exchange Acquisition Description CUSP Ouantik Option Premium Other anis Ibulloaed Withheld Ancreetd GAIN / (OSS Si2D2412 iciii9cni APPLE NC 3:0 00 14,5(0 C0 183,3(0 CO 2:000 12,:e CO 8:299012 11/11/2011 AT&T NC 2,5030) 93,625.00 95,070.93 4.3/5.0) 83IS 03} 12.160012 90140012 AT&T NC 3,033.(0 114,00000 109,37503 El 1,625E0 Example Form 1099-B Long Term Covered Section Covered Long Term Gain or Loss - Cost Basis Reported to IRS Box 6a: Box 6b: Basis Reported to IRS Box IC: Type of Gain or loss: I (m leun Report on Form 8949, Part II, with Box A checked (Box la) 'Box lb) Sox (Box Id) (Box It) iflos 23) (Box I) Box S) IBox 1) Box ?b) Symbol ( Gross Proceeds Los Wash Sale federal Diked Selene Dak of Commission and Cow or Loss Ineonie lax Loss Hol ( REAL I/10 Exchaar Acquisitive Deuription CUSP Quantity Onion Premium Other Bask withheld (GAIN LOSS 10602012 104000 PITNEY wiritS 7,50300 ::5.303 03 97,750.(0 11(210012 40(2011 VERIZCO1 COW NC 450 00 107,10000 97,035 50 lop01.50 1020012 1/5/2011 IADYORCIA 50WEIEWS NC 1,10003 1430000 63,6C0 CO 4,8000 0.20108 IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (Including any attachments) is not intended or written to be used, and cannot be used. in connection with the promotion, marketing or recommendation by anyone unaffiliated with 1Pktorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. EFTA01221806