2011 Tax Guide

A Comprehensive Reference Guide to Your 2011 Tax Information Statement

This comprehensive and informative guide is a tool to assist you or your tax professional with the
preparation of your tax returns. It contains examples, explanations and illustrations from Internal
Revenue Service (IRS) schedules to help you understand your Tax Information Statement.

If your account was transferred to our firm during 2011, your Tax Information Statement only reports
investment activity that occurred since you began doing business with us.

We hope you will find this reference guide to be a useful and effective tool in the preparation
of your 2011 tax returns.
These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer
for the purpose of avoiding tax penalties. Clients should contact their tax professional to discuss the appropriate federal, foreign, state and local tax
treatment of transactions. This guide and the Tax Information Statement referenced herein are solely intended to assist in accumulating data to prepare
income tax returns and should not be construed as tax advice. All amounts and transactions displayed in this guide are for illustration only, and do not
represent actual transactions. Accordingly, no guidance should be inferred as to any specific transaction from the illustrations in this guide.

Read Before You File

If you held a mutual fund, real estate investment trust (REIT), widely held fixed investment trust (WHFIT), widely held mortgage trust (WHMT) or
unit investment trust (UIT) in 2011, we may send you a revised Tax Information Statement. Please be aware that some issuers did not make their final
distribution information available until after January 2012. See page 20 for more information.
TABLE OF CONTENTS

Important Information for Preparing Your Original Issue Discount (OID) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

2011 Income Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 IRS Form 1099-OID, Schedule B, Information Reported
Cost Basis Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 on IRS Form 1099-OID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
IRS Form 1099-B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Calculation and Adjustment of Original Issue Discount (OID) . . . . . . . . . . . . . 27
Schedule of Realized Gains and Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Information Reported on IRS Form 1099-MISC . . . . . . . . . . . . . . . . . . . . . . 28
IRS Form 8949—Sales and Other Dispositions of Capital Assets, Additional Information
Wash Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Items That We Are Required to Report to the IRS,
Introducing Your Tax Information Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Items That We Are Not Required to Report to the IRS . . . . . . . . . . . . . . . . 29
General Information About Your Tax Information Statement . . . . . . . . . . . . . . . . 8 Municipal Tax-Exempt Interest and Municipal Original
Proceeds From Broker and Barter Exchange Transactions Issue Discount (OID) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
IRS Form 1099-B, Schedule D (Capital Gains and Losses) . . . . . . . . . . . . . 9 Collateralized Debt Obligations (CDOs), Collateralized
Sample of the Tax Information Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Mortgage Obligations (CMOs) and Real Estate Mortgage
IRS Forms 8949 and 1040, Schedule D . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Investment Conduits (REMICs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Schedule of Realized Gains and Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Additional Written Statement—Widely Held Fixed Investment
Regulated Futures Contracts IRS Forms 1099-B and 6781 . . . . . . . . . . . . . . . . . 13 Trusts (WHFITs) and Widely Held Mortgage Trusts (WHMTs) . . . . . . . . . . . . . 36
Interest Income IRS Form 1099-INT, Schedule B . . . . . . . . . . . . . . . . . . . . . . . . 14 Supplemental Information—Royalty Trusts and Holding
Dividends and Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Company Depository Receipts (HOLDRS®) Trusts . . . . . . . . . . . . . . . . . . . . . . . 37

Capital Gain Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Retirement Account Distributions IRS Form 1099-R . . . . . . . . . . . . . . . . . . . . . 38

Margin Interest Expense IRS Form 4952 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

IMPORTANT INFORMATION FOR PREPARING YOUR 2011 INCOME TAX RETURN

Before preparing your tax return, please note the following important information. This guide has been tailored for use by individual U.S. taxpayers
(who file IRS Form 1040 and are “investors” for tax purposes and not “traders” or “dealers” in securities for whom special tax rules may apply) and
describes how and where to report certain transactions on your federal income tax return. Your tax professional can provide further advice as to federal,
foreign, state and local tax reporting requirements.

> SEPARATE ACCOUNTS > CORRECTIONS

You will receive a separate Tax Information Statement for each of your Please review your Tax Information Statement. If the statement is
brokerage accounts. incorrect, contact your investment or tax professional. If necessary,
the correct information will be promptly provided to the IRS and we
> TRANSFERRED ACCOUNTS
will mail a revised Tax Information Statement to you.
If your account was transferred to us during 2011, your Tax
Information Statement only includes activity (including income > YOUR TAX INFORMATION STATEMENT IS A SUBSTITUTE
accruals) during the time you conducted business with us. Your former FOR THE FOLLOWING IRS FORMS:
firm should provide IRS Form 1099 for activity that – 1099-B Proceeds from Broker and
occurred before your account was transferred. Barter Exchange Transactions Pages 9-10
> IRS PUBLICATIONS – 1099-INT Interest Income Pages 14-16
IRS publications can be obtained from your local IRS office by calling – 1099-DIV Dividends and Distributions Pages 17-22
the IRS Forms Distribution Center at (800) TAX-FORM, or visiting – 1099-DIV Capital Gain Distributions Page 23
the IRS website at www.irs.gov. For instance, the following IRS
publications provide useful tax information related to reporting securities – 1099-OID Original Issue Discount Pages 25-26
transactions: 550, Investment Income and Expenses; 938, Real Estate – 1099-MISC Miscellaneous Income Page 28
Mortgage Investment Conduits (REMICs) Reporting Information (and > RETIREMENT ACCOUNT DISTRIBUTIONS – PERSHING
Other Collateralized Debt Obligations [CDOs]); and 1212, Guide to
SUBSTITUTE FORM
Original Issue Discount (OID) Instruments.
– 1099-R Retirement Account Distributions Page 38
> DUPLICATE TAX FORMS
If you request a duplicate Tax Information Statement, we will mail
it to the address of record for your account.

This guide is not intended to provide tax advisory services. We suggest that you consult your tax professional to discuss the appropriate federal,
foreign, state and local tax treatment of your transactions. This guide, as well as your Tax Information Statement, are solely intended to assist you in
accumulating data to prepare your income tax returns and should not be construed or relied upon as tax advice. All amounts and transactions displayed
in this guide are only illustrations and do not represent actual transactions. Accordingly, no guidance should be inferred as to any specific transaction
from the illustrations in this guide.

2
COST BASIS REPORTING

On January 1, 2011, the new cost basis reporting requirements mandated by Congress, the Department of Treasury and the Internal Revenue Service
(IRS) took effect. The new tax rules require brokers to report cost basis information when covered securities in your taxable account are sold, exchanged or
transferred. As a result, you will note changes to your Tax Information Statement.

> WHAT THE COST BASIS CHANGES MEAN TO YOU > IMPORTANT TAX FORM CHANGES FOR TAX YEAR 2011
The cost basis of covered stock (stock in a corporation acquired and sold The IRS has modified Form 1099-B and introduced a new
or exchanged in a taxable account in 2011), and the proceeds of sale, will Form 8949, entitled Sales and Other Dispositions of Capital Assets.
be reported on IRS Form 1099-B. This form will also report whether To help you understand the changes, brief descriptions of the form
the gain or loss is short term or long term and if any loss is subject to changes are provided below.
disallowance under the broker wash sale rule. Under the new rules, if you – IRS Form 1099-B. The IRS added new boxes to Form 1099-B for
sold shares of stock in 2011 that were acquired before January 1, 2011, reporting the date of acquisition (box 1b), cost or other basis (box
they are noncovered securities and their cost basis will not be reported 3), amount of loss disallowed due to a wash sale (box 5), whether the
on the 1099-B. It is important to note that, starting for 2011, you must, property sold is a covered or noncovered security transaction (box 6),
in general, provide the cost basis for all sold securities on the recently and whether the gain or loss is short term or long term (box 8). The IRS
introduced Form 8949 (Sales and Other Dispositions of Capital Assets), as also moved and renumbered other boxes on the form to accommodate
well as on the Schedule D of IRS Form 1040 that is filed for the tax year cost basis reporting.
in which the security sale occurs.
– I RS Form 8949. The IRS has introduced Form 8949 for tax reporting
purposes starting for 2011. You or your tax preparer will be required to
record your gain and loss information on one or more 8949 forms based
upon the information contained on your Form 1099-B. Form 8949 and
Schedule D have combined instructions. You can find these instructions
at irs.gov.

Other Important Information About Changes to Your 2011 Form 1099-B

The IRS has required us to modify Form 1099-B in order to accommodate required cost basis reporting information for 2011 tax reporting. When you
receive our new 1099-B, you will notice several changes. Please review the following information, which summarizes these important changes.
Long-term and short-term transactions are segregated in your 1099-B form in a format comparable to the Form 8949, for dispositions of covered securities.
Noncovered securities transactions will also be displayed separately from covered securities transactions and boxes 1b, 3, 5 and 8 will be left blank. The new
1099-B format will simplify your process of recording or transcribing each transaction from the 1099-B to IRS Form 8949.
Below is a list of the three Form 1099-B sections and the corresponding information for Form 8949:

Form 1099-B Section Corresponding Form 8949 Part and Box

1. Short-Term Transactions for Which Basis Was Reported to the IRS 1. Part I Short-Term Capital Gains and Losses—Assets Held One Year
or Less and Box (A)
2. Long-Term Transactions for Which Basis Was Reported to the IRS 2. Part II Long-Term Capital Gains and Losses—Assets Held More
Than One Year and Box (A)
3. Transactions for Which Basis Was Not Reported to the IRS 3. Part I or Part II and Box (B) or Box (C)

Below is a list of the boxes for Form 1099-B, which will report information for covered securities transactions and the corresponding columns on Form 8949:

Form 1099-B Box Corresponding Form 8949 Column

Box 9—Description and Quantity (a) Description of property
Box 1a—Date of Sale or Exchange (d) Date sold
Box 1b—Date of Acquisition (c) Date acquired
Box 2—Gross Proceeds (Less Commissions and Fees) (e) Sales price
Box 3—Cost or Other Basis (f ) Cost or other basis
Box 5—Wash Sale Loss Disallowed (g) Adjustments to gain or loss and (b) Code, if any, for column (g)*

* Enter the amount of the nondeductible loss as a positive number in column (g) and enter code W in column (b). Columns (g) and (b) are used for purposes other than wash sales. For more information about these
columns please see pages D-8 to D-10 of the 2011 combined IRS instructions for Schedule D and Form 8949. For more information about Wash Sales see page D-4 of the combined instructions.

3
COST BASIS REPORTING

Form 1099-B Recipient’s Name and Address: Account Number: 123-456789 2011 TAX AND
JOHN Q. PUBLIC Recipient’s Identification YEAR-END STATEMENT
Here is a sample of what your 1099-B will look like in your 2011 tax statement and a display
Number: 999-99-9999 of the example noted below:

2011 Form 1099-B PROCEEDS FROM BROKER AND BARTER EXCHANGE TRANSACTIONS OMB No. 1545-0715
(For individuals, report details on Form 8949 and Form 1040, Schedule D, Line 1, 2, 8 or 9.)

This is important tax information and is being furnished to the Internal Revenue Service (IRS). If you are required to file 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.
Gross Proceeds – Type of Loss
Date of Sale Date of Covered or Less Commissions Cost or Federal Income Wash Sale Gain Not
or Exchange Acquisition Noncovered Disposition and Fees Other Basis Tax Withheld Loss Disallowed or Loss Allowed
(Box 1a) (Box 1b) (Box 6) Transaction Quantity (Box 2) (Box 3) (Box 4) (Box 5) (Box 8) (Box 15)
SAMPLE STATEMENT

1 Short-Term Transactions for Which Basis Was Reported to the IRS; Report on Form 8949, Part I, with Box A checked.
Description (Box 9): ABC Company CUSIP: 123456ABC
3/15/2011 Various Covered Sale 200 2,000.00 2,200.00 560.00 200.00 Short-Term
12/15/2011 1/15/2011 Covered Sale 100 2,000.00 1,000.00 560.00 Short-Term
Description (Box 9): DEF Company CUSIP: 234567DEF
4/15/2011 3 Various Covered Sale 400 4,000.00 2,600.00 1,120.00 Short-Term
Total Short-Term Covered 8,000.00 5,800.00 2,240.00 200.00

2 Transactions for Which Basis Was Not Reported to the IRS; Report on Form 8949 with Box B checked, in either Part I or Part II as appropriate.
Description (Box 9): ABC Company CUSIP: 123456ABC
3/15/2011 Noncovered Sale 400 4,000.00 1,120.00
Description (Box 9): DEF Company CUSIP: 234567DEF
4/15/2011 3 Noncovered Sale 800 8,000.00 2,240.00
Total Noncovered 12,000.00 3,360.00

Total 20,000.00 5,800.00 5,600.00 200.00

1. COVERED
For covered securities transactions (identified in Box 6), the 1099-B form Frequently Asked Questions
will report the Date of Sale or Exchange (Box 1a), Date of Acquisition
Q. WHY ALL THE CHANGES?
(Box 1b), Gross Proceeds (Box 2), Cost or Other Basis (Box 3), Federal
A. For 2011 tax return reporting purposes, the IRS requires filers of
Income Tax Withheld (Box 4), Wash Sale Loss Disallowed (Box 5) and

SAM-STMT-TYE2-8-11
whether the gain or loss is short term or long term (Box 8). Form 1099-B to sort information within specific categories to assist
taxpayers with the preparation of their tax returns. The IRS introduced
Page 2 of 28
2. NONCOVERED a new form for 2011 – Form 8949 – as an intermediary step to
For noncovered securities transactions (Box 6), the 1099-B form will reporting Sales and Other Dispositions of Capital Assets prior
report the Date of Sale or Exchange (Box 1a), Gross Proceeds (Box 2), to reporting them on Schedule D of Form 1040. The illustration
and Federal Income Tax Withheld (Box 4). The date of acquisition, cost on page 11 provides a basic example of how you would use the
or other basis, type of gain or loss and whether any loss is disallowed due information received on your 2011 Form(s) 1099-B in order to
to a wash sale, are intentionally left blank, and will not be reported to the complete one or more IRS Form 8949.
IRS. Also, noncovered securities transactions are grouped together by the Please note that for certain transactions, investors should
Date of Sale or Exchange, regardless of the holding period. As a taxpayer report the results on IRS Forms 4797 (Sales of Business
you are responsible for reporting the cost basis and resulting gain or loss Property) or 6781 (Gains and Losses From Section 1256
realized upon disposition of a noncovered asset. Contracts and Straddles) for 2011 rather than on Form 8949
3. EXAMPLE: COVERED VERSUS NONCOVERED prior to final reporting on Schedule D of Form 1040. Please
As of January 1, 2011, the new regulations distinguish between covered see your Form 1099-B instructions for more information.
and noncovered securities. As a result of these changes, your security sales
may be divided and reported in one or more sections of the Form 1099-B.
For example, you sold 1,200 shares of DEF Company on
April 15, 2011, of which you acquired 400 shares in 2011 and 800 shares
prior to 2011. The sale of the 400 shares acquired in 2011 will be treated
as a covered security sale transaction and reported in the short-term covered
section (Short-Term Transactions for Which Basis Was Reported to the
IRS). The sale of the 800 shares acquired prior to 2011 will be treated as a
noncovered security sale transaction and reported in the noncovered section
(Transactions for Which Basis Was Not Reported to the IRS).
Please see pages 9 through 11 for more information regarding the information provided on your Form 1099-B.

4
COST BASIS REPORTING

Schedule of Realized Gains and Losses

If your financial firm subscribes to our premium Tax and Year-End Statement (TYES), the Schedule of Realized Gains and Losses section will be
provided. There are significant changes to this section due to new cost basis reporting requirements. We do not directly report the information in this
section to the IRS. However, the information is used as the basis for information reported on your Form 1099-B.
Here is a sample of what your Schedule
Recipient’s Name and of Realized Gains and Losses will
Address: 2011 TAX
look like if you receive the TYES format.
Account Number: 123-456789
ThisAND
example includes noncovered
JOHN Q. PUBLIC Recipient’s Identification YEAR-END STATEMENT
securities transactions to stress the fact that cost basis information (though not999-99-9999
Number: reported to the IRS on Form 1099-B) will be displayed:
Schedule of Realized Gains and Losses
(We doSchedule
not report this of Realized
information to the Gains and
IRS; it is used Losses
as the basis for reporting on Form 1099-B)
(We do not report this information to the IRS; it is used as the basis for reporting on Form 1099-B)
Date of Sale Date of Disposition Gross Cost or Option Wash Sale Realized Disposition
Date of Sale
or Exchange Acquisition Date ofTransaction Disposition
Quantity Proceeds GrossBasis
Other Cost or
Premium Wash Sale
Loss Disallowed Gain orRealized
Loss MethodDisposition
or Exchange Acquisition Transaction Quantity Proceeds Other Basis Loss Disallowed Gain or Loss Method
Short-Term Transactions for Which Basis Was Reported to the IRS (Covered)
1Description
Short-Term Transactions
CUSIP: for Which Basis Was Reported to the IRS (Covered)
1 : ABC Company
Description : ABC
123456ABC
Company CUSIP: 123456ABC
3/15/2011 01/15/2011 Sale 100 1,000.00 1,200.00 (200.00)3 0.00 FI
3/15/2011 02/15/2011* 01/15/2011 Sale Sale 100 100
1,000.00 1,000.00
1,000.00 1,200.00 (200.00)3 0.00 0.00 FI FI
02/15/2011
*Wash sale: 30 Sale
days added to holding period 100 1,000.00 1,000.00 0.00 FI
200 2,000.00 2,200.00 (200.00) 0.00
12/15/2011 04/15/2011 Sale 100 200
2,000.00 2,000.00
1,000.00 2,200.00 (200.00) 1,000.00 0.00 FI
Description:12/15/2011
DEF Company CUSIP: 04/15/2011
234567DEF Sale 100 2,000.00 1,000.00 1,000.00 FI
Wash sale: 59 days added to holding period
04/15/2011 01/15/2011 Sale 200.124 2,000.00 1,000.00* 1,000.00 FI
Description: DEF Company CUSIP: 234567DEF
*Original Cost Basis: 1,000.00 Gift Fair Market Value: 1,400.00
04/15/2011 01/15/2011 Sale 200.124 2,000.00 1,000.00 1,000.00 FI
02/15/2011 Sale 200.124 2,000.00 1,600.00 400.00 FI
Gift Fair Market Value: 1,400.00
400.248 4,000.00 2,600.00 1,400.00
02/15/2011 Sale 200.124 2,000.00 1,600.00 400.00 FI
Total Short-Term Covered 8,000.00 5,800.00 (200.00) 2,400.00
STATEMENT

400.248 4,000.00 2,600.00 1,400.00

SAMPLESTATEMENT

Total Short-Term
Short-Term Covered
Transactions 8,000.00
for Which Basis Was Not Reported to the 5,800.00
IRS (Noncovered) (200.00) 2,400.00
Description : ABC Company CUSIP: 123456ABC
2 2 03/15/2011
Short-Term Transactions for Which Basis Was Not Reported to the IRS (Noncovered)
11/15/2010 Sale 100 1,000.00 500.00 500.00 FI
Description : ABC Company CUSIP: 123456ABC
Please Provide
Recipient’s Sale
Name and Address: 100 1,000.00 600.00 123-456789
Account Number: 2011
400.00 TAX AND FI
03/15/2011 11/15/2010 Sale 200 100
2,000.00 1,000.00
1,100.00 500.00 500.00
900.00 FI
JOHN Q. PUBLIC
Please Provide Sale 100 Recipient’s
1,000.00 Identification 600.00
YEAR-END
400.00
STATEMENT
FI
Description: DEF Company CUSIP: 234567DEF Number:
200 2,000.00999-99-9999 1,100.00 900.00
04/15/2011 11/15/2010 Sale 200.124 2,000.00 1,000.00 1,000.00 FI
SAMPLE

Description: DEF12/15/2010
Company CUSIP: 234567DEFSale 200.124 2,000.00 1,200.00 800.00
Schedule of Realized Gains and Losses
04/15/2011 11/15/2010 Sale 400.248 200.124
4,000.00 2,000.00
2,200.00 1,000.00 1,000.00
1,800.00 FI
(Continued)
(We do not
Total Short-Term Noncovered 12/15/2010 Sale
report this information to the IRS; it is used as the 200.124
basis for 2,000.00
reporting on Form
6,000.00 1099-B)
3,300.00 1,200.00 800.00
2,700.00
Total Short-Term 400.248
14,000.00 4,000.00
9,100.00 2,200.00 (200.00) 1,800.00
5,100.00

3 3
TotalDate
Short-Term
of SaleNoncoveredDate of Disposition 6,000.00
Gross 3,300.00
Cost or Wash Sale 2,700.00
Realized Disposition
Long-TermTransactions
TotalorShort-Term for Which Basis Was Not Reported to the IRS (Noncovered) 14,000.00 9,100.00 (200.00) 5,100.00
Exchange Acquisition Transaction Quantity Proceeds Other Basis Loss Disallowed Gain or Loss Method
Description : ABC Company CUSIP: 123456ABC
4 4 Long-Term Transactions for Which Basis Was Not Reported to the IRS (Noncovered)
02/15/11 09/15/2009 Sale 100 900.00 100.00 100.00 800.00 FI
Description : ABC Company CUSIP: 123456ABC
10/15/2009 Sale 100 900.00 200.00 700.00 FI
02/15/11 09/15/2009 Sale 100 900.00 100.00 800.00 FI
200 1,800.00 300.00 100.00 1,500.00
10/15/2009 Sale 100 900.00 200.00 700.00 FI
03/15/2011 11/15/2009 Sale 100 1,000.00 300.00 700.00 FI

SAM-STMT-TYE-2-12
200 1,800.00 300.00 1,500.00 Page 8 of 27
12/15/2009 Sale 100 1,000.00 400.00 600.00 FI
03/15/2011 11/15/2009 Sale 200 100
2,000.00 1,000.00
700.00 300.00 1,300.00 700.00 FI
12/15/2009 Sale 100 1,000.00 400.00 600.00 FI
Description: DEF Company CUSIP: 234567DEF 200 2,000.00 700.00 1,300.00
04/15/2011 11/15/2009 Sale 200.124 2,000.00 600.00 1,400.00 FI
Description: DEF12/15/2009
Company CUSIP: 234567DEF
Sale 200.124 2,000.00 800.00 1,200.00 FI
04/15/2011 11/15/2009 Sale 400.248 200.124
4,000.00 2,000.00
1,400.00 600.00 2,600.001,400.00 FI
Total Long-Term Noncovered 12/15/2009 Sale 200.124
7,800.00 2,000.00
2,400.00 800.00
100.00 5,400.001,200.00 FI
Total Long-Term 400.248
7,800.00 4,000.00
2,400.00 1,400.00
100.00 5,400.002,600.00
Total Long-Term
Total Short-Term Noncovered
and Long-Term 21,800.00 7,800.00
11,500.00 2,400.00
100.00 (200.00) 5,400.00
10,500.00
Total Long-Term 7,800.00 2,400.00 5,400.00
3 Realized loss is net of a disallowance due to a wash sale.
Total Short-Term and Long-Term 21,800.00 11,500.00 (200.00) 10,500.00
Tax Lot Disposition Methods:
FI = FIRST IN FIRST OUT
Sl = VERSUS PURCHASE
Transaction lots will be grouped and sorted by security within the Both covered and noncovered securities transactions are grouped by their
Please refer to the Client Service Information Section in your brokerage account statement for your account’s existing tax-lot disposition method. The disposition method is the method which you have selected to use in
following subsections: holding
the disposal of each tax lot of the securities held in your account. If you do not select a method, your account will be period,
defaulted to the First In, Firsteither
Out (FIFO) short term
method. Your (securities
account’s heldwillfor
selected tax lot method one
be used to year or less) or
determine the cost basis for calculating gain and/or loss, unless another method was selected at the time of the security disposal, and this may affect the type of gain or loss (short-term or long-term) reported for covered
security transactions on the IRS Form 1099-B.
1. Short-Term Transactions for Which Basis Was Reported to the long term (securities held for more than one year). The date of acquisition,
Schedule of Realized Gains and Losses cost or other basis, amount of loss disallowed
IRS (Covered) There are significant changes to this section due to new cost basis reporting requirements. We do not report this information to the IRS. However, it is used as the basis for what is reported on your Form 1099-B. due to a wash sale (using the
“broker” wash sale reporting rule), and type of gain
For “Covered” securities transactions, the totals for each sale or exchange will also be displayed in the corresponding section of the 1099-B form of this tax statement. This will include the new cost basis information.
or loss are included for
2. Short-Term Transactions
For “Noncovered”for Which
securities transactions,Basis Was amounts
only the proceeds Not (and Reported to taxes
any federal income thewithheld fromboth covered
the proceeds) andinnoncovered
will be reported transactions.
the “Transactions for Which Thesection
Basis Was Not Reported” section
of the also includes the
1099-B form. Noncovered securities transactions are grouped on the 1099-B form regardless of holding period. Thus, this section provides valuable cost basis and holding period information to assist your tax preparation.
IRS (Noncovered) Transaction lots will be grouped and sorted by security in the following subsections: realized gain or loss amount(s) (which are not provided on Form 1099-B
3. Long-Term Transactions
Short-Term Transactions for Which Basis Was Reported to the IRS (Covered)
for Which Basis Was Reported to the because it is not an IRS 1099-B form requirement for 2011).
Short-Term Transactions for Which Basis Was Not Reported to the IRS (Noncovered)
SAM-STMT-TYE-2-12

IRS (Covered) Page 9 of 27

N OTE: Long-term gains and losses occur when assets are disposed
after being held for more than a year. Generally, in 2011 long-term
transactions will not be covered since certain securities would need to
have been purchased and disposed in 2011 to be considered covered.
This section is not represented in the sample above.
4. Long-Term Transactions for Which Basis Was Not Reported to the
IRS (Noncovered)

5
COST BASIS REPORTING

IRS Form 8949—Sales and Other Dispositions of Capital Assets

You will be required to record gain and loss information on one or more 8949 forms based upon the information displayed on your Form(s) 1099-B. For
your convenience, the transactions are grouped by holding period (short term or long term) in a format comparable to the Form 8949, for dispositions of
covered securities on the Form 1099-B, as well as for noncovered securities transactions within the Schedule of Realized Gains and Losses. This presentation
of the data should assist with the completion of your 8949 forms.
Please see page 11 for more information regarding IRS Form 8949 and its use in the completion of Schedule D (Form 1040).

8949 Sales and Other Dispositions of Capital Assets OMB No. 1545-0074

2011
Form
▶ SeeInstructions for Schedule D (Form 1040).
▶ For more information about Form 8949, see www.irs.gov/form8949
Department of the Treasury ▶ Attach to Schedule D to list your transactions for lines 1, 2, 3, 8, 9, and 10. Attachment
Internal Revenue Service (99) Sequence No. 12A
Name(s) shown on return Your social security number
SAMPLE

Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less
Note: You must check one of the boxes below. Complete a separate Form 8949, page 1, for each box that is checked.
*Caution. Do not complete column (b) or (g) until you have read the instructions for those columns (see the Instructions for Schedule
D (Form 1040)). Columns (b) and (g) do not apply for most transactions and should generally be left blank.
(A) Short-term transactions reported on (B) Short-term transactions reported on Form (C) Short-term transactions for which
Form 1099-B with basis reported to the IRS 1099-B but basis not reported to the IRS you cannot check box A or B
(a) (b) (c) (d) (e) (f) (g)
Description of property Code, if any, Date acquired Date sold Sales price Cost or other basis Adjustments to
1 (Example: 100 sh. XYZ Co.) for column (g)* (Mo., day, yr.) (Mo., day, yr.) (see instructions) (see instructions) gain or loss, if any*

Wash Sales
Generally, a wash sale occurs when a covered or noncovered security is Other Important Points
disposed of at a loss and an identical or a substantially identical security is – Wash sale updates are only applied to nonretirement accounts with long
purchased or acquired within the 30-day period before or after the sale. equity holdings.
IRS Form 1099-B Box 5: Wash Sale Loss Disallowed – The basis of stock or securities acquired 30 days before or after the sale, at
A loss is reported as disallowed when the sale of a covered security is treated as a loss, is adjusted to take into account the disallowed loss. The adjustment
a broker wash sale. This occurs when you re-purchase the identical security, ensures that the loss is not permanently disallowed but merely postponed
as determined by CUSIP number, in the same brokerage account within the until the repurchased investment is sold.
30-day period preceding or following the date of the original loss.
– The holding period of the stock or securities acquired includes the
holding period of those sold at a loss. Realized Gain/Loss and Unrealized
Wash Sale Example Gain/Loss is based on the adjusted trade date of a replacement lot.
Please note - You are still obligated to apply the wash sale rules across all
You acquired 100 shares of ABC Company for $1,200. You sell your of your applicable brokerage accounts for substantially identical securities
100 shares for $1,000 and within 30 days from the sale date you when preparing your tax returns.
repurchase the same stock for $800. Because you repurchased the
identical stock, you cannot deduct the loss of $200 on the sale. That For additional information about wash sales, please refer to the following at
loss is disallowed and that amount is added to the cost basis of the irs.gov: 2011 Instructions for Schedule D (and Form 8949) and IRS Pub. 550
repurchased stock. In this example the cost basis of the repurchased (Investment Income and Expenses).
stock is increased to $1,000. The holding period for the repurchased lot
is also adjusted to the acquisition date of the initial wash sale. See the
wash sale in the Schedule of Realized Gains and Losses on page 5 for an
example of how this will be displayed on that section.
2 Totals. Add the amounts in columns (e) and (f). Also, combine the
amounts in column (g). Enter here and include on Schedule D, line 1 (if
box A above is checked), line 2 (if box B above is checked), or line 3 (if
box C above is checked) . . . . . . . . . . . . . . . ▶ 2
Form 8949 (2011)
Additional Information
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z

For additional information about basis and its use during your tax preparation please refer to the following IRS publications: 2011 Instructions for
Schedule D (and Form 8949), IRS Pub. 550 (Investment Income and Expenses) and IRS Pub. 551 (Basis of Assets). You can find these publications
at irs.gov or by calling the IRS Forms Distribution Center at (800) TAX FORM.

6
INTRODUCING YOUR TAX INFORMATION STATEMENT
Account Number: 123-456789 2011 TAX AND
Recipient’s YEAR-END STATEMENT
Your Tax Information Statement begins with a summary of the information weIdentification
report to the IRS. Certain categories of transactions in this summary
Number: 999-99-9999
may not pertain to your account. A second summary displays transactions that we do not report to the IRS, but includes information you may find
Recipient’syour
helpful in preparing Nametax Address: Examples of these summaries Your
andreturns. Financial Advisor
are illustrated Is:
below.
ROBERT ‘CONTACT’ ADVISOR PERSHING LLC
The details of each transaction reported on your Tax Information Statement are displayed after the summaries and are explained in their respective
1234 STREET Federal Identification
JOHN Q.this
sections throughout PUBLIC
guide. BOX 1234 Number: 12-3456789
1234 TOWNLINE STREET SOMEWHERE, MA 00000-0000
APT. #1234
SOMEWHERE, MA 00000-0000
Sample Summary of Information We ReportNOTICE:
to theThis tax IRS
statement is incomplete as it relates to your CDO, CMO, REMIC or FASIT. You should not file your tax return until
you receive a revised statement from us with the applicable information. (See the message at the end of this statement).

Summary of Gross Proceeds and Regulated Future Contracts 2011 1099-DIV Dividends and Distributions OMB No. 1545-0110
Amount Box Amount
Gross Proceeds (Less Commissions and Fees) ......................................................................21,800.00 * 1a Total Ordinary Dividends ...........................................................................................................1,155.52
Cost or Other Basis (For Covered Securities Transactions) ....................................................5,800.00 * 1b Qualified Dividends ........................................................................................................................812.00
Federal Income Tax Withheld – Gross Proceeds ........................................ 6,104.00* 2a Total Capital Gain Distributions .................................................................................................. 625.00
Wash Sale Loss Disallowed (For Covered Securities Transactions) ........................................200.00 * 2b Unrecaptured Section 1250 Gain .................................................................................................175.00
* Details are reported to the IRS. Refer to the 1099-B section for the details that are reported. 2c Section 1202 Gain ......................................................................................................................... 350.00
Regulated Futures Contracts: 2d Collectibles (28%) Gain ....................................................................................................................0.00
Profit or (Loss) Realized in 2011.........................................................................................................841.43 3 Nondividend Distributions ........................................................................................................... 116.00
Unrealized Profit or (Loss) on Open Contracts – 12/31/2010.......................................................141.12 4 Federal Income Tax Withheld ......................................................................402.14
Unrealized Profit or (Loss) on Open Contracts – 12/31/2011................................................... 1,557.00 5 Investment Expenses ..........................................................................................................................0.00
Aggregate Profit or (Loss) .................................................................................................................2,257.13 6 Foreign Tax Paid .................................................................................................................................34.35
Federal Income Tax Withheld – Reg. Futures Contracts ..................................... 0.00 7 Foreign Country or U.S. Possession...................................................................................................n/a
8 Cash Liquidation Distributions..................................................................................................1,094.00
9 NonCash Liquidation Distributions ................................................................................................0.00
2011 1099-INT Interest Income OMB No. 1545-0112
Box Amount
1 Interest Income ...........................................................................................................................4,715.01
Summary of Original Issue Discount
Recipient’s
2 Early Withdrawal Name
Penalty. and Address:
.................................................................................................................0.00 Account Number: 123-456789 2011 TAX AND Amount
3 Interest JOHN
on U.S. Savings Bonds & Treasury Obligations ................................................... 7,642.44 Recipient’s Identification
Q. PUBLIC YEAR-END STATEMENT 531.61
Original Issue Discount (Non-U.S. Treasury Obligations) ..............................................................
4 Federal Income Tax Withheld ........................................................................ 0.00 Number: 999-99-9999 Other Periodic Interest............................................................................................................................ 800.00
5 Investment Expenses. ........................................................................................................................0.00 Federal Income Tax Withheld ................................................................................. 0.00
6 Foreign Tax Paid..................................................................................................................................0.00 Original Issue Discount on U.S. Treasury Obligations ..........................................................................0.00
7 Foreign Country or U.S. Possession ................................................................................................ n/a Investment Expenses ...................................................................................................................................0.00
Form 1099-MISC
8 Tax-Exempt 20111,475.00
Interest.................................................................................................................... Miscellaneous Income (OMB No. 1545-0115)
Box 9 Specified Private Activity Bond Interest ....................................................................................595.00 Amount
1 10 Tax-Exempt Bond CUSIP No......................................................................................................Various
Rents ...........................................................................................................................................................................................................................................................................................................................................................................0.00
2 Royalties .....................................................................................................................................................................................................................................................................................................................................................................0.00
3 Other Income ...........................................................................................................................................................................................................................................................................................................................................................0.00
4 This is Federal
importantIncome tax information
Tax Withheld and is being furnished to the Internal Revenue Service (IRS). If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is
............................................................................................................................................................................................................................................0.00
8 taxable and the IRS
Substitute determines
Payments in Lieu thatof itDividends
has not been reported.
or Interest ................................................................................................................................................................................................................................................................................. 50.00

Sample Summary
This is important tax informationof
and Information We Revenue
is being furnished to the Internal Do Not Report
Service (IRS). If you areto theto fileIRS
required 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.

Summary Of Transactions We Do Not Report To The IRS (See enclosure for additional information)
Amount
Schedule of Realized Gains and Losses
Total Short-Term Noncovered - Cost or Other Basis ........................................................................................................................................................................................................................................................................................ 3,300.00
Total Long-Term Noncovered - Cost or Other Basis ......................................................................................................................................................................................................................................................................................... 2,400.00
Total Noncovered Cost or Other Basis ................................................................................................................................................................................................................................................ 5,700.00
Total Short-Term Covered - Realized Gain or Loss ........................................................................................................................................................................................................................................................................................... 2,400.00
Total Short-Term Noncovered - Realized Gain or Loss .................................................................................................................................................................................................................................................................................... 2,700.00
Total Long-Term Noncovered - Realized Gain or Loss ...................................................................................................................................................................................................................................................................................... 5,100.00
Total Realized Gain or Loss ................................................................................................................................................................................................................................................................ 10,500.00
Municipal Original Issue Discount
Original Issue Discount – Subject to Alternative Minimum Tax ...................................................................................................................................................................................................................................................13.75
Original Issue Discount – Not Subject to Alternative Minimum Tax ....................................................................................................................................................................................................................................... 240.48
Total Municipal Original Issue Discount ............................................................................................................................................................................................................................ 3,379.23
Non-Reportable Distributions
Partnership Cash Distributions ........................................................................................................................................................................................................................................................................................................ 420.00
Investment Expenses, Advisory Fees and Shortfalls .................................................................................................................................................................................................................................................................... 100.00
Return of Principal Distributions .................................................................................................................................................................................................................................................................................................... 300.00
Total Non-Reportable Distributions ...................................................................................................................................................................................................................................... 820.00
Equity Options Transactions
Cost of Equity Option Purchases ...............................................................................................................................................................................................................................................................................................12,112.50
Equity Option Proceeds and Expirations .................................................................................................................................................................................................................................................................................... 7,588.99
Securities Purchased
Net Cost of Securities Purchased ................................................................................................................................................................................................................................... 352,329.56

Page 2 of 29

7
GENERAL INFORMATION ABOUT YOUR TAX INFORMATION STATEMENT

> EXEMPT ACCOUNTS We report federal income tax withheld separately in the 1099-B,
Certain accounts are exempt from IRS Form 1099 reporting and 1099-DIV, 1099-INT and 1099-OID sections of your statement. You
backup withholding requirements. These accounts include, generally, should combine these amounts and report them on IRS Form 1040,
all corporate accounts; qualified retirement plans (QRPs); individual line 62.
retirement accounts (IRAs); certain WHFITs; charitable organizations; When withholding is required, we remit the amount withheld directly
foreign accounts; and most federal, state and local government accounts. to the IRS. We cannot refund this tax withholding to you.
A more complete list of exemption criteria is provided in the Instructions
to IRS Form W-9 (Request for Taxpayer Identification Number and > NOMINEE RECIPIENTS
Certification). If your account is exempt from IRS Form 1099 reporting If your SSN or EIN is shown on your Tax Information Statement, and
and you received a Tax Information Statement, please contact your the statement includes amounts belonging to another person, you are
investment professional. considered a nominee recipient. You must file IRS Form 1099 for each
of the other owners, showing the income allocable to each. File the
> TAXPAYER IDENTIFICATION NUMBER applicable IRS Form 1099 along with IRS Form 1096 (Annual Summary
The IRS allows filers of 1099 forms (B, DIV, INT, MISC and OID) and Transmittal of U.S. Information Returns) with the IRS Center in
to truncate a recipient identification number (Social Security number your area. You should be listed as the “payer” on IRS Form 1099 and
[SSN], Individual Taxpayer Identification Number [ITIN] or Adoption as the “filer” on IRS Form 1096. The other owner(s) should be listed
Taxpayer Identification Number [ATIN]) on the payee statement for tax as the “recipient(s)” on IRS Form 1099. You must furnish an IRS Form
year 2011. These identification numbers are displayed as follows, for 1099 to the other owner(s). Spouses are not required to file a nominee
example, on your 2011 Tax Information Statement: XXX-XX-6789. report to show amounts owned by the other.
Please note that the IRS does not allow for the truncation of Employer
Identification Numbers (EINs). EINs will be displayed in their entirety > PAYER
on the noted forms. The IRS also does not allow for the truncation of The “payer” for all transactions on your Tax Information Statement is
SSNs, ITINs or ATINs on 1099s if the forms are delivered Pershing LLC (Taxpayer Identification Number 13-2741729). This
electronically. If you receive your tax statement electronically, it will name and TIN should be listed wherever the payer’s name is requested
display your entire tax identification number. on an IRS form with respect to amounts reported on your Tax
Information Statement.
Please check your name and TIN (or truncated number) as shown
on your Tax Information Statement. If either is missing or incorrect, > REVISED TAX INFORMATION STATEMENTS
promptly provide an executed IRS Form W-9 (Request for Taxpayer If we receive corrected or updated information, we will report it to you
Identification Number and Certification) to your investment and to the IRS, if required, on a revised Tax Information Statement.
professional. If more than one name is shown, please ensure that the
> DIFFERENCES BETWEEN YOUR TAX INFORMATION
SSN on the Tax Information Statement belongs to the individual
whose name is listed first. If that is not the case, please have the STATEMENT AND BROKERAGE ACCOUNT STATEMENTS
Tax Information Statement corrected by providing an IRS Form Dividends and interest declared and made payable by mutual funds and
W-9 to your investment professional. On the IRS Form W-9, circle REITs in October, November or December 2011 are reported on the
the name of the individual whose SSN is being furnished. To avoid 2011 Tax Information Statement, even when the dividends are actually
backup withholding, it is important to ensure that your name and paid in January 2012. Dividends and interest paid on WHFITs and
TIN are correct. If the information is not correct, or does not match WHMTs in October, November or December 2011 are reported on the
the records of the IRS or Social Security Administration, then, upon 2011 Tax Information Statement, even when the dividends and interest
notice from the IRS, pursuant to its “B-Notice Program,” we may be are actually paid in January or February 2012. These dividends are
required to commence backup withholding. referred to as “spillover dividends” and will not be reported again on
the 2012 Tax Information Statement.
> FEDERAL INCOME TAX WITHHELD
(BACKUP WITHHOLDING) Frequently Asked Questions: TIN
We are required by law to withhold 28% of federal income tax from all
reportable dividends, interest and gross proceeds paid to certain U.S. CORRECTIONS TO YOUR TIN
persons (including trusts and partnerships) who fail to furnish a valid Q. My child’s stock was sold through a custodial account. However,
TIN or appropriate certification (IRS Form W-9). This is called the TIN reflects my TIN. How can this be corrected?
“backup withholding.” If you are exempt from backup withholding A. You should complete a new IRS Form W-9 (Request for Taxpayer
because you are an exempt recipient (for instance, QRP or charity), Identification Number and Certification) and circle your child’s name
please furnish your investment professional with an executed IRS Form as the person for whom the TIN is supplied. Submit this form to
W-9, indicating the exemption. If you are exempt from backup your investment professional and request that a new Tax Information
withholding because you are a foreign person, please furnish a Statement, as well as an account correction, be made.
withholding certificate, such as IRS Form W-8BEN or W-8IMY.

8
PROCEEDS FROM BROKER AND BARTER EXCHANGE TRANSACTIONS

IRS Form 1099-B, Schedule D (Capital Gains and Losses)

The amounts indicated in this section of your Tax Information Statement reflect proceeds from certain covered and noncovered securities transactions
such as sales, redemptions, tender offers and maturities. We also report a bond’s final principal distribution in this section of the statement.
Your Tax Information Statement reflects gross proceeds, net of transaction costs (for instance, commissions and fees), and does not represent net
profit. Transactions are reported on a trade-date basis and each is reported separately to the IRS. Accordingly, you should report each transaction
separately on your tax return to avoid a mismatch with the IRS.
> TRADE DATE VERSUS SETTLEMENT DATE interests in REMICs and in other WHMTs or in reasonably required
We generally report sales of publicly traded securities to the IRS on a reserve funds as measured by value. Proceeds from sales and redemptions
trade-date basis on IRS Form 1099-B. Accordingly, you should report of WHFITs are set forth on Form 1099-B. In addition to the
transactions on a trade-date basis. information reported to the IRS on Form 1099-B, we are also required
Exception: Short sales must be reported during the tax year the sales to furnish you with an Additional Written Statement with detailed
are closed rather than the year they are opened. Short sales opened in information regarding affected transactions by March 15, 2012.
2011 will not be reported until they are closed, unless they are closed – Commodity Trust Proceeds: Commodity trusts (such as the iShares®
by December 31, 2011. For short sales, the date shown is the date the COMEX Gold Trust) are generally classified as grantor trusts for U.S.
security was delivered to close the short sale. federal income tax purposes. As a result, the trust itself will not be subject
> HOLDING PERIOD to U.S. federal income tax. Instead, the trust’s income and expenses will
“flow through” to the shareholders. These trusts typically will sell some
Report your capital gains and losses as either short term or long term,
of their underlying commodity holdings during the calendar year to
depending on how long you held the asset. Assets held for more than one
pay trust expenses, and they will not make any distributions of cash to
year should be reported as long term. The sample tax form on the next
shareholders in connection with the sales. At the end of the year, the gross
page assumes that some investments were held for the requisite period of
proceeds from such sales will be reportable to the shareholders on IRS
more than one year to qualify as long term. Your actual holding period
Form 1099-B and be reportable by the shareholders on Form 8949 (Sales
will vary with respect to each investment.
and Other Dispositions of Capital Assets) and Schedule D of IRS Form
For covered securities transactions, we will report the type of gain or loss, 1040 for tax purposes. Shareholders may be able to claim deductions for
short term or long term in Box 8—Type of Gain or Loss. their proportionate amount of trust expenses reported as paid, subject to
> TRANSACTIONS REPORTED ON IRS FORM 1099-B DESCRIBED any applicable limitation.
Below are the common transactions that are reported in this section of > REVERSE CONVERTIBLE SECURITIES
your Tax Information Statement: equity sales, Treasury bill sales, sales The income paid on reverse convertible securities will be split into two
of notes and bonds, trust sales, WHFITs, WHMTs, commodity trust components and separately reported as “Interest and Option Premium,”
proceeds and short sales. which is based on the issuer’s supplemental pricing instructions. Option
– Equity Sales: Proceeds from the sale of equities are reported premiums on Form 1099-B for maturities redeemed for cash in 2011 are
on a trade-date basis, net of commissions. reported on IRS Form 1099-B. When stock is purchased based upon the
– Treasury Bill Sales: To properly report proceeds from the sale of exercise of an option, the option premium reduces the cost of the acquired
Treasury bills on your tax return, you should determine which portion stock. When stock is sold based upon the assignment of an option, the
of your gain or loss is capital gain or loss, and which portion is proceeds of that sale are increased by the option premium and reported
ordinary income or loss. The discount on Treasury bill maturities is on Form 1099-B for covered securities ONLY. For noncovered securities
reported in the 1099-INT section of your Tax Information Statement the proceeds amount is reported on Form 1099-B excluding the option
as part of Interest on U.S. Savings Bonds and Treasury Obligations premium. Option premiums on reverse convertibles sold in 2011 are
(Box 3). Refer to page 14 for additional information. reported on IRS Form 1099-B. The interest on reverse convertibles
– Sales of Notes and Bonds: The principal portion of the proceeds that did not mature in 2011 will be reported on IRS Form 1099-INT.
from the sale of notes and bonds is reported in this section. Accrued However, the option premium for the payment will be reported in the
interest received on federally taxable notes and bonds sold between tax year of the maturity.
interest payment dates is not included in this section of your Tax > SHORT SALES
Information Statement, but is reported on a settlement-date basis - Short sales must be reported during the tax year the sales are closed
in the 1099-INT section of your statement, and is identified by a rather than the year they are opened.
symbol “#” shown after the amount. - Short sales opened in 2011 will only be reported for that tax year if
– Trust Sales: A trust sale represents the total amount paid to a selling they are closed by December 31, 2011.
trust interest holder for the sale of a trust interest and should be - In the event a short sale is partially closed during 2011, Pershing will
reported on Form 8949 and Schedule D of your IRS Form 1040. This only report information for the portion of the sale that was closed.
includes principal payments that completely retire a debt instrument
- If a short position opened in 2011 is transferred to your account from
(other than a final scheduled principal payment) and pro rata
another firm and subsequently closed in 2011, we will report the closing
partial principal prepayments. It does not include pro rata sales by
transactions on Form 1099-B if the delivering firm includes both the
nonmortgage widely held fixed investment trusts (NMWHFITs) to
effect redemptions or assets received in any corporate reorganization. proceeds and the acquisition date within the transfer statement.
– WHFITS: The IRS requires us to provide information regarding Short Sale Example:
income and expenses attributable to securities deemed to be WHFITs
and WHMTs on Form 1099-B. The definition of a WHFIT includes For example, you sold 500 shares of ABC Company in 2011, of which
UITs that are treated for tax purposes as grantor trusts and not as a you acquired 200 shares in 2011 (closing transaction). Pershing will
regulated investment company (RIC), royalty trust, mortgage-backed report the disposition of the 200 shares on the IRS Form 1099-B under
securities (MBSs), HOLDRS® trust or commodity trust. The definition Short-Term Transactions for Which Basis Was Reported to the IRS.
of a WHMT includes WHFITs that invest solely in mortgages, regular
9
SAMPLE OF THE TAX INFORMATION STATEMENT

1. Proceeds from broker and barter exchange transactions are reported 7. Details regarding each transaction are provided. In accordance
on IRS Form 1099-B—Proceeds from Broker and Barter Exchange with rules for WHFITs, the form displays items of gross income
Transactions. These transactions include sales, redemptions, tender and expenses for WHFITs. A trust sale is one transaction type that
offers and maturities. Each transaction in this section is reported to would be displayed. A trust sale represents the total amount paid to a
the IRS. selling trust interest holder for the sale of a trust interest and should
2. Covered transactions will be grouped and sorted by the security be reported on Schedule D of IRS Form 1040. Please refer to notes
CUSIP® within the following two subsections: appearing at the bottom of your IRS Form 1099-B for a description
of each type of transaction.
– Short-Term Transactions for Which Basis Was Reported to the
IRS; Report on Form 8949, Part I, with Box A checked. 8. Quantity: The number of shares may be displayed. If fractional
– Long-Term Transactions for Which Basis Was Reported to the shares are included, the fractional amount will be displayed.
IRS; Report on Form 8949, Part II, with Box A checked. 9. Short sales are indicated with the “*” symbol next to the amount
3. Noncovered transactions will be grouped and sorted by the security displayed in the Proceeds (Less Commissions & Fees) (Box 2) column.
CUSIP within the following subsection: 10. Gross Proceeds—Less Commissions and Fees (Box 2): Gross proceeds
– Transactions for Which Basis Was Not Reported to the IRS; from transactions involving stocks, bonds and other debt obligations
Report on Form 8949 with Box B checked, in either Part I or Part are reported in Box 2. These amounts do not reflect net profits and
II as appropriate. are net of transaction costs (for instance, commissions and fees).
Taxpayers report the gross proceeds from each transaction separately
4. Date of Sale or Exchange (Box 1a): The trade date of the sale or
on IRS Form 8949 (Sales and Other Dispositions of Capital Assets)
exchange is shown. For short sales, the date shown is the date the
and IRS Form 1040, Schedule D (Capital Gains and Losses). This box
security was delivered to close the short sale.
does not include proceeds from regulated futures contracts.
5. Date of Acquisition (Box 1b): This box will be blank for noncovered
11. Cost or Other Basis (Box 3): The cost or other basis for disposition
securities transactions. The word “Various” will be displayed if the
transactions of covered securities is shown. The box will be blank for
securities sold were acquired on a variety of dates. For covered short
noncovered securities transactions. See Form 8949 and Schedule D
sales (for tax year 2011 these are short sales opened and closed in 2011)
(Form 1040) instructions and IRS Pub. 550 (Investment Income and
the date shown is the acquisition date of the security delivered to close
Expenses) and IRS Pub. 551 (Basis of Assets) for details about basis.
the short sale.
12. If proceeds were subject to federal tax withholding, the amount withheld
6. Covered or Noncovered (Box 6): If Covered is displayed, the
is reported in the Federal Income Tax Withheld (Box 4) column.
securities sold were covered securities transactions and information
may be provided in boxes 1b, 3, 5 and 8. If Noncovered is displayed, 13. Wash Sale Loss Disallowed (Box 5): This amount is the nondeductible
the securities sold were noncovered securities transactions and boxes loss in a wash sale transaction for a covered security. This amount is
1b, 3, 5 and 8 may be blank. Generally, a covered security is a stock displayed as a positive amount in this section, as required by the IRS.
in a corporation acquired and disposed of in 2011. For details on wash sales, see the Schedule D (Form 1040) instructions
and Pub. 550.
Recipient’s Name and Address: 2011type
14. Type of Gain or Loss (Box 8): The
Account Number: 123-456789 TAXofAND
gain or loss, short term
Recipient’s Name and Address:
Recipient’s Name and Address: Account Number:
Account Number: 123-456789
123-456789 2011 TAX
2011 TAX AND
AND
YEAR-END STATEMENT
JOHN
JOHN Q.
JOHN
Q. PUBLIC
Q. PUBLIC
PUBLIC or long term, for covered securities
Recipient’s Identification
Recipient’s999-99-9999
Number: Identification YEAR-END
YEAR-END transactions,
STATEMENTis shown.
STATEMENT For
Recipient’s Identification
Number: noncovered security transactions this will be blank.
Number: 999-99-9999
999-99-9999

2011 Form 1099-B PROCEEDS FROM BROKER AND BARTER EXCHANGE TRANSACTIONS OMB No. 1545-0715
2011
2011 Form 1099-B
Form report
1099-B PROCEEDS
PROCEEDS FROM
FROM BROKER
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EXCHANGETRANSACTIONS
TRANSACTIONS OMB No.
OMB No. 1545-0715
1545-0715
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reported.
10
Gross Proceeds – 14
Type of Loss
4 5 6 Gross Proceeds–– 11 12 13 Type of Loss
Date of Sale
Date
or ExchangeofSale
Sale
Date of
Dateof
Acquisition of
Covered or
Coveredor
Noncovered or 7Disposition
Less
GrossCommissions
Lessand
Proceeds
Commissions
Fees
Cost or
CostBasis
Other or
Federal Income
Federal Income Loss
Tax Withheld
Wash Sale
Wash Sale
Disallowed
Gainof
Type
Gain
orGain
Loss
Not
Loss
Allowed Not
Date
or
or(Box
Exchange
of
Exchange1a)
Date
Acquisition
(Box 1b)
Acquisition
Covered
Noncovered
(Box 6)
Noncovered Disposition
Transaction
Disposition
8Quantity
Less Commissions
and Fees
(BoxFees
and 2)
Cost
Other
or
Basis
(BoxBasis
Other 3)
Federal
Tax
Tax(Box
Income
Withheld
4)
Withheld
Wash
Loss
Loss(Box
Sale
Disallowed
5)
Disallowed or
(Box Loss
or Loss 8)
Not
Allowed
(Box
Allowed 15)
SAMPLE STATEMENT

(Box
(Box 1a) 1a) (Box
(Box 1b) 1b) (Box
(Box 6) 6) Transaction
Transaction Quantity
Quantity (Box
(Box 2)2) (Box
(Box 3) 3) (Box
(Box 4) 4) (Box
(Box 5)5) (Box
(Box 8) 8) (Box
(Box 15) 15)
Short-Term Transactions for Which Basis Was Reported to the IRS; Report on Form 8949, Part I, with Box A checked.
2 Short-Term Transactions
Short-Term
Description
Transactions for
for Which
Which Basis
(Box 9): ABC Company
BasisWas
WasReported
Reportedto
CUSIP: 123456ABC
tothe
theIRS;
IRS;Report
Reporton
onForm
Form8949,
8949,Part
PartI,I,with
withBox
BoxAAchecked.
checked.
Description (Box
Description (Box 9):
9): ABC
ABCCompany
Company CUSIP:123456ABC
CUSIP: 123456ABC
3/15/2011 Various Covered Sale 200 2,000.00 2,200.00 560.00 200.00 Short-Term
3/15/2011
3/15/2011 Various
Various Covered
Covered Sale
Sale 200
200 2,000.00
2,000.00 2,000.00
2,200.00 560.00
560.00 200.00
200.00 Short-Term
Short-Term
12/15/2011 1/15/2011 100 1,000.00
12/15/2011
12/15/2011
Description
1/15/2011
(Box 9):1/15/2011
DEF Company
Covered
Covered Sale
CUSIP: 234567DEFSale
100
100 2,000.00
2,000.00 9 1,000.00
1,000.00 560.00
560.00 Short-Term
Short-Term
Description (Box
Description (Box 9):
9): DEF
DEFCompany
Company CUSIP:234567DEF
CUSIP: 234567DEF
4/15/2011 Various Covered Sale 400.248 4,000.00 2,600.00 1,120.00 Short-Term
4/15/2011
4/15/2011 Various
Various Covered
Covered Sale
Sale 400.248
400.248 4,000.00
4,000.00 2,600.00
2,600.00 1,120.00
1,120.00 Short-Term
Short-Term
Total Short-Term Covered 8,000.00 5,800.00 2,240.00 200.00
TotalShort-Term
Total Short-TermCovered
Covered 8,000.00
8,000.00 5,600.00
5,800.00 2,240.00
2,240.00 200.00
200.00

3 Transactions for Which Basis Was Not Reported to the IRS; Report on Form 8949 with Box B checked, in either Part I or Part II as appropriate.
Transactions for
for Which
Which Basis
Basis Was
Was Not
NotReported
Reportedtotothe
theIRS;
IRS;Report
Reporton
onForm
Form8949
8949with
withBox
BoxBBchecked,
checked,inineither
eitherPart
PartIIor
orPart
PartIIIIas
asappropriate.
appropriate.
Transactions
Description (Box 9): ABC Company CUSIP: 123456ABC
Description
Description (Box 9):
2/15/2011 (Box 9): ABC
ABCCompany CUSIP:123456ABC
Company Noncovered
CUSIP: 123456ABCSale 200 1,800.00 504.00
2/15/2011
2/15/2011
3/15/2011 Noncovered
Noncovered Sale
Sale 200
200
400 1,800.00
1,800.00
4,000.00 504.00
504.00
1,120.00
3/15/2011
3/15/2011 Noncovered Sale 400 4,000.00 1,120.00
Description (Box 9): DEF Company Noncovered
CUSIP: 234567DEFSale 400 4,000.00 1,120.00
Description
Description (Box 9):
4/15/2011 (Box 9): DEF
DEFCompany CUSIP:234567DEF
Company Noncovered
CUSIP: 234567DEFSale 800.496 8,000.00 2,240.00
4/15/2011
4/15/2011
Total Noncovered Noncovered
Noncovered Sale
Sale 800.496
800.496 8,000.00
8,000.00
13,800.00 2,240.00
2,240.00
3,864.00
TotalNoncovered
Total Noncovered 12,800.00
13,800.00 3,864.00
3,864.00
Total 21,800.00 5,800.00 6,104.00 200.00
Total
Total 21,800.00
21,800.00 5,600.00
5,800.00 6,104.00
6,104.00 200.00
200.00

New for 2011 – Cost Basis Reporting

10 New for 2011by–Congress,
Cost Basis
On January 1, 2011, the new cost basis reporting requirements mandated theReporting
Department of Treasury and the Internal Revenue Service (IRS) took
effect.
On The new
January tax rules
1, 2011, require
the new costbrokers to report requirements
basis reporting cost basis information
mandatedwhen covered securities
by Congress, in yourof
the Department taxable account
Treasury areInternal
and the sold, exchanged or transferred.
Revenue Service The
(IRS) took
SAMPLE OF THE TAX INFORMATION STATEMENT

Report each transaction separately on IRS Form 8949 and Form 1040, Schedule D, as either short term or long term, depending on your holding period. The cost
basis information will be provided for covered securities transactions. These transactions should be itemized in Part I of Form 8949 for short-term transactions and
in Part II of Form 8949 for long-term transactions. You should determine the cost or other basis for each transaction reflected on Form 8949 and Schedule D from
your records for noncovered transactions. The sample statement below illustrates how this information is reported on your Tax Information Statement, and the
sample tax form below illustrates how you should report this information on your tax return.

8949
IRS Form 8949 and IRS Form 1040,Sales
Schedule D Dispositions of Capital Assets
and Other OMB No. 1545-0074

2011
Form
See Instructions for Schedule D (Form 1040). ▶

The IRS requires filers of Form 1099-B

Department to sort information
of the Treasury withinDspecific The IRS introduced
1, 2, 3, 8, 9,aand
▶ For more information about Form 8949, see www.irs.gov/form8949
▶ Attach to Schedule to list your transactions for lines new10. form for 2011,AttachmentForm 8949—Sales and Other
Internal Revenue Service (99) Sequence No. 12A
categories to assist you withName(s)
the preparation
shown on return of your returns. Your 1099-B Dispositions of Capital Assets. The new grouping
Your social security number of information on the
records will be grouped within three sections: 2011 1099-B form is designed to assist you in completing your 8949 form(s).
Part I Short-Term Capital Gains and Losses—Assets Held The Onebelow Year or Less provides a basic example of how you would use the
illustration
1. Short-Term TransactionsNote:for Which Basis Was Reported to the IRS
You must check one of the boxes below. Complete a separate information
Form 8949, page received
1, for each onbox
yourthat2011 Form 1099-B to complete one or more
is checked.
for those columns (see the Instructions 2011 TAX AND
2. Long-Term Transactions *Caution.
Dfor
Recipient’s
(FormWhich
NameDoand notAddress:
1040)). Basis
complete column (b) or (g) until you have read
Columns Was Reported
(b) and (g) do not to theforIRS
apply
the instructions
Account
most transactions
Number: 123-456789
IRSand8949
shouldforms.
generally be left blank.
for Schedule
JOHN Q. PUBLIC Recipient’s Identification YEAR-END STATEMENT
3. Transactions for Which Basis (A) Short-term transactions reported on
Was Not Reported to the IRS(B)
Form 1099-B with basis reported to the IRS
Short-termNumber:
transactions
The
1099-B but basis not reported
reported on Form
999-99-9999
Formto the1099-B
IRS
(C) Short-term transactions for which
example below
you cannot check provides
box A orthree
B covered short-term transactions:
(a) (b) (c) (d) (e) (f) (g)
Description of property Code, if any, Date acquired Date sold Sales price Cost or other basis Adjustments to
2011 Form 1
1099-B PROCEEDS FROM BROKER AND BARTER EXCHANGE TRANSACTIONS
(Example: 100 sh. XYZ Co.) for column (g)* (Mo., day, yr.) (Mo., day, yr.) (see instructions)
OMB No. 1545-0715
(see instructions) gain or loss, if any*

(For individuals, report details on Form 8949 and Form 1040, Schedule D, Line 1, 2, 8 or 9.)
SAMPLE STATEMENT

This is important tax information and is being furnished to the Internal Revenue Service (IRS). If you are required to file 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.
Gross Proceeds – Type of Loss
Date of Sale Date of Covered or Less Commissions Cost or Federal Income Wash Sale Gain Not
or Exchange Acquisition Noncovered Disposition and Fees Other Basis Tax Withheld Loss Disallowed or Loss Allowed
(Box 1a) (Box 1b) (Box 6) Transaction Quantity (Box 2) (Box 3) (Box 4) (Box 5) (Box 8) (Box 15)

Short-Term Transactions for Which Basis Was Reported to the IRS; Report on Form 8949, Part I, with Box A checked.
Description (Box 9): ABC Company CUSIP: 123456ABC
3/15/2011 Various Covered Sale 200 2,000.00 2,000.00 560.00 Short-Term
12/15/2011 1/15/2011 Covered Sale 100 2,000.00 1,000.00 560.00 Short-Term
Description (Box 9): DEF Company CUSIP: 234567DEF
4/15/2011 Various Covered Sale 400.248 4,000.00 2,600.00 1,120.00 Short-Term
Total Short-Term Covered 8,000.00 5,600.00 2,240.00

8949
Transactions for Which Basis Was Not ReportedSales and
to the IRS; Other
Report on FormDispositions of Capital
8949 with Box B checked, Assets
in either Part OMB No. 1545-0074
I or Part II as appropriate.
2011
Form
▶ See Instructions for Schedule D (Form 1040).
Description (Box 9): ABC Company CUSIP: 123456ABC
▶ For more information about Form 8949, see www.irs.gov/form8949
2/15/2011 Department of the Treasury
Noncovered Sale 200D to list your transactions
1,800.00 Attachment
▶ Attach to Schedule for lines 1, 2, 3, 8, 9, and 10. 504.00 Sequence No. 12A
Internal Revenue Service (99)
3/15/2011 Noncovered
Name(s) shown on return Sale 400 4,000.00 1,120.00
Your social security number
Description (Box 9): DEF Company CUSIP: 234567DEF
4/15/2011 Part I Noncovered Capital Gains
Short-Term Sale 800.496 8,000.00
and Losses—Assets Held One Year or Less 2,240.00
SAMPLE TAX FORM

Total Noncovered 12,800.00 3,864.00

Note: You must check one of the boxes below. Complete a separate Form 8949, page 1, for each box that is checked.
Total 21,800.00 6,000.00 6,104.00
*Caution. Do not complete column (b) or (g) until you have read the instructions for those columns (see 200.00
the Instructions for Schedule
D (Form 1040)). Columns (b) and (g) do not apply for most transactions and should generally be left blank.
X (A) Short-term transactions reported on (B) Short-term transactions reported on Form (C) Short-term transactions for which
Form 1099-B with basis reported to the IRS 1099-B but basis not reported to the IRS you cannot check box A or B
(a) (b) (c) (d) (e) (f) (g)
Description of property Code, if any, Date acquired Date sold Sales price Cost or other basis Adjustments to
1 (Example: 100 sh. XYZ Co.) for column (g)* (Mo., day, yr.) (Mo., day, yr.) (see instructions) (see instructions) gain or loss, if any*
200 sh. ABC Company Various 03-15-2011 2,000 2,000
100 sh. ABC Company 01/15/2011 12-15-2011 2,000 1,000
400.248 sh. DEF Company Various 04-15-2011 4,000 2,600

SAM-STMT-TYE2-8-11
2 Totals. Add the amounts in columns (e) and (f). Also, combine the Page 4 of 28
amounts in column (g). Enter here and include on Schedule D, line 1 (if
box A above is checked), line 2 (if box B above is checked), or line 3 (if
box C above is checked) . . . . . . . . . . . . . . . ▶ 2 8,000 5,600
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z Form 8949 (2011)

You would then take the totals at the bottom of the form, which could certainly also include line item amounts from other 1099-B forms, to complete
Line 1 of Schedule D of your Form 1040:
SCHEDULE D OMB No. 1545-0074
(Form 1040) Capital Gains and Losses
2011
SAMPLE TAX FORM

▶ Attach to Form 1040 or Form 1040NR. ▶ See Instructions for Schedule D (Form 1040).
Department of the Treasury Attachment
▶ Use Form 8949 to list your transactions for lines 1, 2, 3, 8, 9, and 10.
Internal Revenue Service (99) Sequence No. 12
Name(s) shown on return Your social security number

Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less
Complete Form 8949 before completing line 1, 2, or 3. (e) Sales price from (f) Cost or other basis (g) Adjustments to
(h) Gain or (loss)
Form(s) 8949, line 2, gain or loss from
This form may be easier to complete if you round off cents to from Form(s) 8949, Form(s) 8949, Combine columns (e),
column (e) line 2, column (f) (f), and (g)
whole dollars. line 2, column (g)

1 Short-term totals from all Forms 8949 with box A

checked in Part I . . . . . . . . . . . . . 8,000 ( 5,600 ) 2,400
2 Short-term totals from all Forms 8949 with box B
checked in Part I . . . . . . . . . . . . . ( )
3 Short-term totals from all Forms 8949 with box C 11
checked in Part I . . . . . . . . . . . . . ( )
SAMPLE OF THE TAX INFORMATION STATEMENT

Schedule of Realized Gains and Losses

1. The Schedule of Realized Gains and Losses section is provided on 4. The Cost or Other Basis column will display the cost or other basis
all Tax and Year-End Statements (TYES). If your financial firm at the lot level for a disposition transaction.
enrolled in the service, you will receive this premium tax statement. 5. If a wash sale occurs, a Wash Sale Loss Disallowed amount may be
The information in the schedule is not reported to the IRS, but it does displayed in this column. This amount is a negative amount (displayed
contain detail and summary information that is used as the basis of in parentheses) in this section, which is consistent with how the amount
reporting transactions on Form 1099-B. is displayed in the Schedule of Realized Gains and Losses on your
2. Covered transactions will be grouped and sorted by the security brokerage account statements. The number of days added to a lot
CUSIP within the following subsections: holding period as a result of a wash sale will be displayed under the
– Short-Term Transactions for Which Basis Was Reported to the Date of Acquisition for the lot (as shown in the sample).
IRS (Covered) 6. Realized Gain or Loss amounts are provided at the lot level.
– Long-Term Transactions for Which Basis Was Reported to the Note that the IRS does not require the reporting of this information
IRS (Covered) on the 2011 Form 1099-B.

The covered sections will contain lot details and summary totals. The 7. The Disposition Method used for the selection of the lot will be
summary totals for these transaction types for a security will also be displayed as, for example, “FI” for a First-in, First-out (FIFO)
displayed in the corresponding section of the 1099-B form of the TYES. selection method. A key will be provided after the section for the
types of disposition methods listed for the details in the schedule.
3. Noncovered transactions will be grouped and sorted by the security
CUSIP within the following subsections: 8. For Inherited/Gifted Securities the original cost basis and gift fair
market value may be displayed.
– Short-Term Transactions for Which Basis Was Not Reported to the
IRS (Noncovered) 9. A transaction may be split among multiple sections. The sample
statement below displays an example of this. In the sample a sale of
– Long-Term Transactions for Which Basis Was Not Reported to the 400 shares of ABC Company occurred on March 15, 2011. Of the
IRS (Noncovered) 400 shares sold, 200 were acquired in 2011 and are displayed in the
The noncovered sections will also contain lot detail and summary Short-Term covered section. The other 200 shares included in the sale
totals, but only the proceed amounts will be summarized in the were purchased prior to 2011 and are displayed in the Short-Term
“Transactions for Which Basis Was Not Reported” section of the noncovered section.
1099-B form. The schedule thus provides valuable cost basis data 2011 TAX AND
Recipient’s Name and Address: Account Number: 123-456789
and holding period information
JOHN Q. PUBLIC
to assist with tax preparation. Recipient’s Identification YEAR-END STATEMENT
Number: 999-99-9999

Schedule of Realized Gains and Losses

1 (We do not report this information to the IRS; it is used as the basis for reporting on Form 1099-B)
4 5 6 7
Date of Sale Date of Disposition Gross Cost or Wash Sale Realized Disposition
or Exchange Acquisition Transaction Quantity Proceeds Other Basis Loss Disallowed Gain or Loss Method

2 Short-Term Transactions for Which Basis Was Reported to the IRS (Covered)
Description : ABC Company CUSIP: 123456ABC
3/15/2011 01/15/2011 Sale 100 1,000.00 1,200.00 (200.00)3 0.00 FI
9 02/15/2011 Sale 100 1,000.00 1,000.00 0.00 FI
SAMPLE STATEMENT

200 2,000.00 2,200.00 (200.00) 0.00

12/15/2011 04/15/2011 Sale 100 2,000.00 1,000.00 1,000.00 FI
Wash sale: 59 days added to holding period
Description: DEF Company CUSIP: 234567DEF
04/15/2011 01/15/2011 Sale 200.124 2,000.00 1,000.00 1,000.00 FI

8 Gift Fair Market Value: 1,400.00

02/15/2011 Sale 200.124 2,000.00 1,600.00 400.00 FI
400.248 4,000.00 2,600.00 1,400.00
Total Short-Term Covered 8,000.00 5,800.00 (200.00) 2,400.00

Short-Term Transactions for Which Basis Was Not Reported to the IRS (Noncovered)
3 Description : ABC Company CUSIP: 123456ABC
03/15/2011 11/15/2010 Sale 100 1,000.00 500.00 500.00 FI
9 Please Provide Sale 100 1,000.00 600.00 400.00 FI
200 2,000.00 1,100.00 900.00
Description: DEF Company CUSIP: 234567DEF
04/15/2011 11/15/2010 Sale 200.124 2,000.00 1,000.00 1,000.00 FI
12/15/2010 Sale 200.124 2,000.00 1,200.00 800.00
400.248 4,000.00 2,200.00 1,800.00
Total Short-Term Noncovered 6,000.00 3,300.00 2,700.00
Total Short-Term 14,000.00 9,100.00 (200.00) 5,100.00
SAM-STMT-TYE-2-12

Page 8 of 27

12
REGULATED FUTURES CONTRACTS

IRS Form 1099-B and IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles)
We report information related to your regulated futures contracts in this section of your Tax Information Statement. While it is only necessary for
you to report the aggregate profit or loss from regulated futures contracts, we are required to report aggregate profit or loss and its three components
as follows:
A. PROFIT OR (LOSS) REALIZED IN 2011 D. AGGREGATE PROFIT OR (LOSS)
This amount indicates the profit (or loss) realized from regulated futures This is a summary of your regulated futures contracts activity.
contract transactions closed during 2011 (see Box 10 below). Aggregate profit (or loss) is calculated here (see Box 13 below).
B. UNREALIZED PROFIT OR (LOSS) ON OPEN
CONTRACTS—12/31/2010
This amount was previously reported to you on your 2010 Tax Sample Calculation of Aggregate Profit (or Loss)
Information Statement, as the contracts were marked to their market Aggregate profit (or loss) can be calculated based upon information in
value at the end of 2010. It is reported here as an adjustment to your your Tax Information Statement as follows:
2011 aggregate profit (or loss), since it should have been included in A – B + C = D
your income for 2010 (see Box 11 below).
($421.38) – $141.12 + ($1,000.00) = ($1,562.50)
C. UNREALIZED PROFIT OR (LOSS) ON OPEN
Report total aggregate profit (or loss) on IRS Form 6781, line 1. Transfer the
CONTRACTS—12/31/2011 totals from IRS Form 6781 to IRS Form 1040, Schedule D, according to the
This amount indicates unrealized profit (or loss) on open contracts instructions for IRS Form 1040.
as of December 31, 2011, based on their market value at the end
of the year (see Box 12 below).

Box 10
B
SAMPLE STATEMENT

Box 11
C

Box 12

Report Aggregate Profit or (Loss) on IRS Form 6781 as shown below.

Gains and Losses From Section 1256

6781
OMB No. 1545-0644

Form
Contracts and Straddles 2011
SAMPLE TAX FORM

Department of the Treasury Attachment

Internal Revenue Service Attach to your tax return. Sequence No. 82
Name(s) shown on tax return Identifying number

Check all applicable boxes (see instructions). A Mixed straddle election C Mixed straddle account election
B Straddle-by-straddle identification election D Net section 1256 contracts loss election
Part I Section 1256 Contracts Marked to Market
(a) Identification of account (b) (Loss) (c) Gain

1 Form 1099-B, Pershing LLC, 13-2741729 (1,562 50)

2 Add the amounts on line 1 in columns (b) and (c) . . . . . . . . . . . . 2 ( )

3 Net gain or (loss). Combine line 2, columns (b) and (c) . . . . . . . . . . . . . . . . . 3 13
4 Form 1099-B adjustments. See instructions and attach schedule . . . . . . . . . . . . . . 4
INTEREST INCOME

IRS Form 1099-INT, Schedule B (Interest and Ordinary Dividends)

The amounts reported in this section of your Tax Information Statement reflect interest income credited to your account during 2011. The summary section
of your Tax Information Statement reflects four totals for interest income: Interest Income, Interest on U.S. Savings Bonds and Treasury Obligations,
Tax-Exempt Interest and Specified Private Activity Bond Interest. We report each of these totals separately to the IRS. Accordingly, you should report each
total separately on your tax return. We report details of these totals in the Interest Income section of your Tax Information Statement as described below.
A. INTEREST INCOME (BOX 1) adjust your estimated Treasury bill interest income to the actual
Interest income reported in this column was paid by corporations amount. To make this adjustment, first compute the actual discount
(U.S. and foreign) and U.S. government agencies, and may include earned by subtracting the original cost of the Treasury bill from its
interest on your credit balance. Total interest income reported in maturity value. Compare this result to the amount on your Tax
this column is also reported in the summary section of your Tax Information Statement, and adjust IRS Form 1040, Schedule B,
Information Statement as Interest Income. You should report this total line 1, described below.
on IRS Form 1040, Schedule B, line 1, as indicated on the next page.
The various classifications of the interest income are reported Sample Calculation of a Treasury Bill Discount
to you in the CUSIP/Security Type column as described below.
In the calculation below, assume you purchased a Treasury bill for
– U.S. Corporations: This includes interest from certain U.S. corporate $9,500 and it matured at $10,000. If we reported Treasury bill interest
bonds, taxable municipal bonds and certain collateralized debt income on your statement ($982.70 in the example illustrated on the
obligations (CDOs) issued without original issue discount (OID). next page), based on rates in IRS Publication 1212, you should make
Also included is the total credit interest earned on cash balances in the following adjustment to IRS Form 1040, Schedule B:
your account. Maturity value $10,000.00
– Foreign Corporations: This includes interest from bonds issued by Less: cost (9,500.00)
foreign entities. We furnish this information as a separate category to Actual discount (interest) $500.00 $500.00
enable you to determine your ability to deduct or claim a credit for Less: amount per statement 1 (982.70)
Negative adjustment to the reported amount $(482.70) 2
foreign taxes paid. Refer to the Foreign Tax Paid section on page 29
for additional information. Report the total interest on U.S. savings bonds and Treasury
– U.S. Government Agencies: This includes interest from obligations on your statement on IRS Form 1040, Schedule B, line 1
government agencies, such as the Federal National Mortgage ($7,178.24, which includes the $982.70 income in this example and as
Association (FNMA) and the Government National Mortgage illustrated on the next page). Then, a few lines below that, report the
Association (GNMA). adjustment on Schedule B, as well ($482.70 in this calculation, also
illustrated on the next page). This adjustment, which may be negative
B. INTEREST ON U.S. SAVINGS BONDS AND TREASURY or positive, should be labeled “OID adjustment.”
OBLIGATIONS (BOX 3)
Interest income reported in this column was paid on U.S. Treasury
notes, bonds and bills. This interest income is not included in Interest C. INVESTMENT EXPENSES (BOX 5)
Income (Box 1), Tax-Exempt Interest (Box 8) or Specified Private The amount reported in this column represents your share of investment
Activity Bond Interest (Box 9). Total Interest on U.S. Savings Bonds expenses of a single-class REMIC. Your share of UIT, WHFIT and
and Treasury Obligations (Box 3) is also reported in the summary WHMT expenses are also reported in Box 5. If you file IRS Form 1040,
section of your Tax Information Statement. You should report total you may deduct these expenses on IRS Form 1040, Schedule A, line 23,
interest on U.S. savings bonds and Treasury obligations on IRS Form subject to the 2% limit. This amount is included in Box 1.
1040, Schedule B, line 1, as indicated on the next page. Please note D. FOREIGN TAX PAID (BOX 6)
the following information concerning U.S. Treasury bills: This amount represents taxes paid to foreign governments on interest from
– Cost Basis in Our Files: When we have the cost of a Treasury bill foreign sources. You may choose to claim these taxes as a credit or as an
on file, we report the actual Treasury bill discount for bills maturing itemized deduction on your federal income tax return. Refer to the Foreign
during 2011. To assist you in reviewing our calculations, your Tax Tax Paid section on page 23 of this guide for additional information.
Information Statement displays the purchase price and quantity
E. TAX-EXEMPT INTEREST (BOX 8)
beneath the description of each Treasury bill. Generally, no
Interest income reported in this column represents interest paid on
adjustment is necessary when we report the actual Treasury bill
bonds issued by a state, the District of Columbia, a U.S. possession,
discount. However, if you owned multiple lots of the same
an Indian tribal government or a political subdivision. It also includes
Treasury bill issue and those lots were purchased on different dates
any accrued interest on these bonds sold between interest dates and any
and at different prices, and you disposed a portion of the bills before
exempt-interest dividends from a mutual fund or RIC. Total interest
maturity, we used the FIFO method to calculate the discount
income reported in this column is also reported in the Summary section
shown on the statement. If you elect to use the specific identification
of your Tax Information Statement as Tax-Exempt Interest Income. You
method, you may need to adjust the amount reported before
should report this total on IRS Form 1040, line 8b.
entering it on your tax return.
– Cost Basis Not in Our Files: If you did not purchase the Treasury F. SPECIFIED PRIVATE ACTIVITY BOND INTEREST (BOX 9)
bill through our firm, your Tax Information Statement may not Interest income reported in this column was paid from specified private
reflect the original cost of your bills. Your statement will specify activity bonds. This includes exempt interest dividends paid by a mutual
“IRS Publication 1212,” indicating that we are using an estimate fund or RIC on specified private activity bonds. This interest is subject to
based on rates published by the IRS. If this is indicated, you should alternative minimum tax (AMT) and is included in Tax-Exempt Interest
(Box 8). Total interest income reported in this column is also reported
14
INTEREST INCOME

in the Summary section of your Tax Information Statement as specified > UITS AND OTHER WHFITs OR WHMTs
private activity bond interest. You may be required to report this total on Interest income earned by certain UITs is also reported in the
IRS Form 6251, Alternative Minimum Tax—Individuals. IRS Form 1099-INT section. If your UIT is organized as a grantor
trust (WHFITs or WHMTs) and earned interest income, your share
> ACCRUED INTEREST RECEIVED/PURCHASED
of the UIT’s interest income is reported in this section. See the Special
Accrued interest received on notes and bonds sold between interest
Message for Owners of Mutual Funds, UITs, WHFITs, WHMTs and
payment dates is included in the 1099-INT section of your Tax
REITs on page 16 for more information.
Information Statement on a settlement-date basis when it is credited
to your account. If you received accrued interest, the amount will be
identified by a symbol “#.” Refer to page 26 of this guide for additional
information on accrued interest purchased.

Report total Interest Income (Box 1) on IRS Form 1040, Schedule B, Part 1, line 1. Report total Interest on U.S. Savings Bonds and Treasury
Obligations (Box 3) separately on IRS Form 1040, Schedule B, Part 1, line 1. Report total Tax-Exempt Interest (Box 8) on IRS Form 1040, line 8b.
For Specified Private Activity Bond interest, see Instructions to IRS Form 6251.

A B C D
SAMPLE STATEMENT

SCHEDULE B OMB No. 1545-0074

Interest and Ordinary Dividends
(Form 1040A or 1040)
2011
SAMPLE TAX FORM

Department of the Treasury Attach to Form 1040A or 1040. See instructions on back. Attachment
Internal Revenue Service (99) Sequence No. 08
Name(s) shown on return Your social security number

1 List name of payer. If any interest is from a seller-financed mortgage and the Amount
Part I buyer used the property as a personal residence, see instructions on back and list
Interest this interest first. Also, show that buyer’s social security number and address
(See instructions Pershing LLC, 13-2741729 7,178 . 24
on back and the Pershing LLC, 13-2741729 4,715 . 01
instructions for
Less: OID Adjustment (482 . 70)
Form 1040A, or
Form 1040,
2
line 8a.)
1

Note. If you 15
received a Form
INTEREST INCOME

Special Message for Owners of Mutual Funds, UITs, WHFITs, WHMTs and REITs
If you held one or more of these investments, we may send you a revised Tax Information Statement if we did not receive reallocation information
by February 4, 2012. Some issuers may not make their final distribution information available until after January. When we have not received the
distribution information from the issuer, we have denoted the income with a symbol (**) on your Tax Information Statement. Income and interest
declared on these investments in October, November or December of 2011 is considered received on December 31, 2011, even if the income or
interest was not actually paid until January (in the case of RICs [or mutual funds] and REITs) or February (in the case of WHFITs and WHMTs)
of 2012. Accordingly, these amounts are reported on your 2011 IRS Form 1099. UIT revisions will be mailed by March 15, 2012. Supplemental
information regarding the percentages of tax-exempt income on municipal bond funds by state and the percentage of government agency,
direct federal and foreign source income for funds will be available by March 1, 2012, via a link at mytaxhandbook.com.

Frequently Asked Questions: Interest Income

CDOs
Q. Why are interest payments on my CDOs missing from my Tax interest income as the difference between your purchase price and the
Information Statement? bill’s redemption amount. Report the amount from your Tax Information
A. Tax information for certain CDOs (including REMICs and WHMTs) Statement on IRS Form 1040, Schedule B, line 1. Then, adjust this
is not available from the issuers until after the February statement amount by the difference between your actual interest income and the
mailing. All taxpayers that held CDOs during 2011 will receive a revised amount reported on your statement. Report this adjustment separately
statement that includes interest income and OID earned on the CDO. on Schedule B, line 1, and label it “OID Adjustment.”
The revised statement will be mailed by March 15, 2012. Also, interest
ERRONEOUS INTEREST PAYMENT
income on a REMIC is reportable by us on an accrual basis, not on a
Q. I received an interest payment from the paying agent that was
cash basis. Refer to page 32 of this guide for additional information.
incorrect. It was not mine, and I returned the money to you. However,
TREASURY BILLS the paying agent still sent an IRS Form 1099-INT to me and will not
Q. I purchased a Treasury bill through my former broker-dealer and correct the information. How do I report this on my tax return?
redeemed it through you. As a result, the interest income reported on A. To avoid a mismatch with the IRS, this transaction should be reported twice
the statement is incorrect. How do I report this on my tax return? on IRS Form 1040, Schedule B. First, report the amount from the paying
A. If you purchased a Treasury bill through your former broker-dealer, we agent’s IRS Form 1099-INT on Schedule B, line 1. Additionally, report the
may not have your purchase price information in our records. When amount you paid to us as a negative adjustment on Schedule B, line 1. Title
this situation occurs, we report interest income to you by following the this negative adjustment “Nominee Distribution.” Refer to the Nominee
guidelines in IRS Publication 1212. You should calculate your actual Recipients section on page 8 of this guide for additional information.

16
DIVIDENDS AND DISTRIBUTIONS

IRS Form 1099-DIV (Dividends and Distributions)

Dividends and other distributions from corporations, mutual funds, UITs, WHFITs and REITs are reported in this section of your Tax Information
Statement. Income derived from money market funds will also be reported in this section. You will receive a separate IRS Form 1099-DIV directly
from a money market fund if we did not handle the processing of your funds for the entire year.

A. TOTAL ORDINARY DIVIDENDS (BOX 1a) Foreign Dividends: Foreign dividends are considered qualified
Ordinary dividends, which include any net short-term capital gains from dividends when they are paid by a foreign corporation that is either:
a mutual fund are fully taxable. Ordinary dividends paid by corporations, (1) incorporated in a U.S. possession; (2) eligible for the benefits
mutual funds, and certain UITs and WHFITs are included in this section of a comprehensive income tax treaty with the United States and
of your Tax Information Statement. Subtotals for U.S. and foreign- that the Treasury Department has determined is satisfactory for this
source ordinary dividends are included at the end of this section. For purpose; or (3) readily tradable on an established securities market
mutual funds and UITs, foreign income includes any distribution that in the United States (such as the New York Stock Exchange® or the
is comprised in whole or in part of foreign-source ordinary dividends. NASDAQ® stock market). However, dividends paid by passive foreign
Report total ordinary dividends on IRS Form 1040, line 9a, or IRS investment companies are not considered qualified dividends.
Form 1040A. Also report it on IRS Form 1040, Schedule B (Interest Money Market and Bond Funds: Dividends paid on money market
and Ordinary Dividends), line 5, if required. See the instructions for IRS and bond funds are nonqualified dividends. As such, these dividends
Form 1040, Schedule B, to determine if you are required to complete are reported in Box 1a, not Box 1b, in this section of your Tax
Schedule B to report your dividends. Information Statement.
B. QUALIFIED DIVIDENDS (BOX 1b) For more information about determining if your dividends qualify
The portion of your dividends that is eligible for the 15% or 0% for the 15% or 0% rate, please see the Instructions to IRS Form 1040
capital gain rate is reported as Qualified Dividends in Box 1b in this or IRS Publication 550.
section of your Tax Information Statement. You should report the
eligible amount on IRS Form 1040, line 9b. If you have qualified C. NONDIVIDEND DISTRIBUTIONS (BOX 3)
dividends, you must figure your tax by completing the Qualified Certain payments represent nondividend distributions, since they are
Dividends and Capital Gains Tax Worksheet on IRS Form 1040 or a return of capital. You should reduce your cost (or other basis) by the
1040A instructions, or the Schedule D Tax Worksheet in the Schedule amount of the nontaxable distribution for the purposes of calculating the
D instructions, whichever applies. gain or loss when the security is sold. Once you have received an amount
equal to your cost (or other basis) for the security, further distributions
Exception: Some dividends that we report as Qualified Dividends are taxable as a capital gain. Please review your dividends carefully to
in Box 1b may not be Qualified Dividends depending on your determine if any dividends received represent a return of capital.
circumstances, including those described below.
D. FEDERAL INCOME TAX WITHHELD (BOX 4)
– You must hold the stock or mutual fund shares for the minimum
Report federal income tax withheld (backup withholding) as a payment
number of days or the dividends will not qualify for the reduced
on IRS Form 1040, line 62. Federal income tax withheld is 28% of
rate. Dividends on stock that you owned for less than 61 days in the
the dividend distribution (including short-term capital gains, long-term
121-day period surrounding the ex-dividend date are not qualified
capital gains and redemptions). Refer to page 8 of this guide for
dividends. The 121-day period begins 60 days before the ex-dividend
additional information.
date. When counting the number of days you held the stock, include
the day you disposed the stock, but not the day you acquired it. E. INVESTMENT EXPENSES (BOX 5)
The ex-dividend date is the first date following the declaration of a Your share of UIT and WHFIT expenses is reported in Box 5. You may
dividend on which the purchaser of a stock is not entitled to receive deduct these expenses (subject to the 2% limit) on the “other expenses”
the next dividend payment. line on Form 1040, Schedule A, line 29. These expenses are included
– For dividends on preferred stock, when the dividend is attributable to in Box 1a.
periods totaling more than 366 days, the stock must be held for at
F. FOREIGN TAX PAID (BOX 6)
least 91 days within the 181 days surrounding the ex-dividend date.
Your Tax Information Statement includes foreign tax paid (withheld) from
– If you are obligated to make payments under a short sale, dividends foreign-source dividends credited to your account during 2011. Refer to
on the stock you sold short (or substantially similar stock) are not page 29 of this guide for additional information.
considered qualified dividends.
– Substitute payments are not qualified dividends. Substitute payments are
the payments you receive when your stock is on loan over the stock’s
ex-dividend date. Your shares could be loaned if you borrow to buy
stock on margin. Substitute payments are separately reported to you
on IRS Form 1099-MISC.

17
DIVIDENDS AND DISTRIBUTIONS

A B C D E F
SAMPLE STATEMENT

SCHEDULE
ADL PLC ADRS B OMB No. 1545-0074
Interest and Ordinary Dividends
(Form
HOME
1040A orFUND
MNP CAPITAL 1040)

Department of the Treasury Attach to Form 1040A or 1040. See instructions on back.
2011
Attachment
Internal Revenue Service (99) Sequence No. 08
FINANCIAL
Name(s) shown on return Your social security number

1 List name of payer. If any interest is from a seller-financed mortgage and the Amount
PRB
Part I buyer used the property as a personal residence, see instructions on back and list
RNDR
Interest
JLL
this interest first. Also, show that buyer’s social security number and address
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 8a.)
1
ReportNote.
TotalIfOrdinary
you
Dividends (Form 1099-DIV, Box 1a) on IRS Form 1040, Schedule B, line 5, as shown below. Transfer the total of all ordinary
dividends to IRS
received Form 1040, line 9a, as shown below.
a Form
1099-INT, Form
1099-OID, or B
SCHEDULE OMB No. 1545-0074
substitute Interest and Ordinary Dividends
(Form 1040A or 1040)
statement from
a brokerage
Department firm,
of the Treasury Attach to Form 1040A or 1040. See instructions on back.
2011
Attachment
list theRevenue
Internal firm’s Service (99) Sequence No. 08
name asshown
Name(s) the on return Your social security number
SAMPLE TAX FORM

payer and enter 2

Add the amounts on line 1 . . . . . . . . . . . . . . . . . . 2
the total interest 3
Excludable interest on series EE and I U.S. savings bonds issued after 1989.
1 Amount
shown on that List name of payer. If any interest is from a seller-financed mortgage and the
Part I
form. Attach Form 8815 . . . . . . . . . . . . . . . . . . . . .
buyer used the property as a personal residence, see instructions on back and list
3
4 Subtract linefirst.
3 from
Interest this interest Also,line
show 2. that
Enter the result
buyer’s socialhere and number
security on Formand
1040A, or Form
address

1040
1040, line 8a . . . . . . . . . . . . . . . . . . . . . . 4
2011
(See instructions Department of the Treasury—Internal Revenue Service (99)
Form

Note. If line 4 is over $1,500, you must complete Part III. Amount
on back and the U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
instructions for 5 List name of payer
See separate instructions.
Part II or
For the year Jan. 1–Dec. 31, 2011, or other tax year beginning
Form 1040A,
, 2011, ending , 20
Your first name and initial Last name Your social security number
Ordinary
Form 1040,
line 8a.)
Dividends
If a joint return, spouse’s first name and initial Last name 1 Spouse’s social security number
(See instructions
Pershing LLC, 13-2741729 1,555 52
Note.
on back If and
Home youaddress
the (number and street). If you have a P.O. box, see instructions. Apt. no.
received
instructions a Form
for ▲ Make sure the SSN(s) above
and on line 6c are correct.
1099-INT,
Form 1040A, Form or
Form City,
1099-OID,
1040, town
or or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campaign
Reportsubstitute
qualified
line 9a.) dividends on IRS Form 1040, line 9b, as shown below. The amount of qualified dividends you report 5onCheck IRShere Formif you,1040, lineif9b,
or your spouse filing
may bestatement
less Foreign
Note.
than
If you
from
the amount
country name of qualified dividends reported on yourForeign Tax Information Statement. Some dividends
province/county Foreign postalthatcodewe jointly,
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report
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want $3 to go to this fund. Checking
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aswillqualified
not change
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your tax or
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received a Form dividends based on your individual circumstances. See Qualified Dividends on page 17, and the Frequently
firm’s refund. Asked You Questions Spouse
section1099-DIV
on pages
name as theor21 and 22 for more information. The example shown here assumes that all of the qualified dividends on the Tax Information
1 Single 4 Head of household (with qualifying person). (See instructions.) If
payer Filing
substitute
and Status2 Add
enter 2 but not your dependent, enter this
Statement qualify
statement from 2 therate.
for the preferential amounts
Married onjointly
filing line 1(even
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the total interest 3
Check
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spouse’s U.S.
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child’s after
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1040
form.
name as the 4 Department
2011 }
Subtract of the Treasury—Internal Revenue Service
line 3 from line 2. Enter the (99) here and on Form 1040A, or Form
result
Form

6a Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . Boxes checked
payerExemptions
and enter U.S.
1040, Individual
8a . .Income
lineSpouse . . . . . . Tax
. . . .Return
. . . . . . . . . . . . . . . . . .OMB . . . No.. 1545-0074
. . . . . . IRS.Use.4 Only—Do not onwrite
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or staple
the ordinary b . . . . No. of children
For the year Jan.Note. If
1–Dec. 31, line
2011,4oris over
other $1,500,
tax year beginningyou must complete Part III. , 2011, ending (4) 20if child under age 17 See separate
,✓ on Amount
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dividends shown c Dependents: (2) Dependent’s (3) Dependent’s
Your first name and • livedsecurity
qualifying for child tax credit Your social with younumber
on that form. 5 initial
(1)List
Firstname
name of payer Last name
Last namesocial security number relationship to you
SAMPLE TAX FORM

6 (see instructions) • did not live with

Part II Add the amounts on line 5. Enter the total here and on Form 1040A, or Form you due to divorce
1040, lineand
9a initial
. . . . Last
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Ordinary
If
If a joint
more return,
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(seesocial security number
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dependents, see Note. If line 6 is over $1,500, you must complete Part III.
Dividends
instructions and You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends;
Dependents on 6c
not entered
(b) Make
had asure theabove
Home address (number and street). If you have a P.O. box, see instructions. Apt. no. SSN(s) above
(See check here ▶
instructions ▲
foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No
Part
on backIIIand the d Total number of exemptions claimed . . . . . . . . . . . . . . . . . lines above ▶
Addon
and numbers
line on
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City, town 7a state,
foror post office, At any time
and ZIP code.during 2011,
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complete interest in(see
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a signature or other authorityPresidential
over a Election Campaign
Foreign
instructions 7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . 7
FormIncome
1040A, or financial account in a foreign country, such as a bank account, securities account, Check or hereother
if you, or your spouse if filing
Accounts
Form Foreign
1040, country name financial 8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . .
account? See instructions on backprovince/county
Foreign for exceptions and filing requirements
8a
jointly, want $3 to go to this fund. Checking
for Form
Foreign postal code TD will
F not change your tax or
a box below
and
line 9a.)Trusts b Tax-exempt
90-22.1 . . . Do. not
. . . interest. . . .on .line. 8a. . . . . . . 8b
. include . . . . . . . . . 5. refund. . . .
Attach Form(s)
9a Ordinary
enter dividends.
the name Attachof the Schedule B if required . . . . . . . . . . . 9a
You Spouse 1,555 52
(See W-2
Note. here. Also b If1“Yes,”Single
If you foreign country
Filing
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attach Status8 During
on
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Forms b Qualified dividends . . . . . . . . . . . 49b
2010, did you receive a distribution from, or were you the grantor of, or transferor to, a
812 00
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back.)
1099-DIV
W-2Gorand 2
10 Married filing jointly
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or ifoffsets
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. . . . . . 10. . .
foreign trust? refunds,
If “Yes,”credits,
you may have to of file
state and local
Form 3520.income taxes . . on. back
See instructions
Check
1099-Ronly
substitute one
if tax 3 Marriedreceived
filing separately. Enter spouse’s SSN above child’s name here. ▶
For Paperwork 11 Alimony . . . . . . . . . . . . . . . . . . . Schedule
. . 11
box.
statement from Reduction Act Notice,
was withheld. see
and full nameForm 1040A
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Qualifying widow(er) B (Form 1040A
with dependent childor 1040) 2011
12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . 12

18
a brokerage firm,
Exemptions
list the
nameIf as
firm’s
youthedid not
6a
13 Yourself. If someone can claim you as a dependent, do not check
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. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .14
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. child
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on 6c who:
. credit15b • lived with you
qualifying for
 If a joint return, spouse’s first name and initial Last name Spouse’s social security number

Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Make sure the SSN(s) above
▲
DIVIDENDS AND DISTRIBUTIONS
and on line 6c are correct.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
If you haveForeign country name
qualified Foreign province/county
dividends, you should use the Qualified Dividends and Capital Gain Tax Foreign postal code
Worksheet (see page 37 ofathe 2011
box below Instructions
will not change your tax to
or IRS
refund.
Form 1040), or the Schedule D Tax Worksheet (see page D-14 of the 2011 Instructions for Schedule D), whichever applies, to figure your tax. The You Spouse

Instructions to IRS
Filing Form 10401 and Schedule
Status Single D tell you which Tax Worksheet to complete 4 to figure
Head your tax. (with qualifying person). (See instructions.) If
of household
2 Married filing jointly (even if only one had income) the qualifying person is a child but not your dependent, enter this
Check only one 3 Married filing separately. Enter spouse’s SSN above child’s name here. ▶

1040
box. 5
2011
Department ofand full name here.Revenue
the Treasury—Internal ▶ Service (99) Qualifying widow(er) with dependent child
Form

Exemptions U.S.
6a Individual
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For the year Jan. 1–Dec. 31, 2011, Spouse . . .
tax year beginning
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No. of children
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(4) ✓ if child under age 17 Your social security number
• lived with you
SAMPLE TAX FORM

social security number relationship to you qualifying for child tax credit
(1) First name Last name (see instructions) • did not live with
Last name yousocial
Spouse’s due tosecurity
divorcenumber
If a joint return, spouse’s first name and initial or separation
If more than four (see instructions)
dependents, see Dependents on 6c
Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
instructions and ▲ Make sure theabove
not entered SSN(s) above
check here ▶ and on line 6c are correct.
Add numbers on
City, town or post office, state,d andTotal number
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also complete . . below
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. . . . . . . . . . Presidential
lines above
Election
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7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . Check

7 here if you, or your spouse if filing
Income
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jointly, want $3 to go to this fund. Checking
8a Taxable interest. Attach Schedule B Foreign province/county
if required . . . . . . . . . . postal
. . code 8a
a box below will not change your tax or
b Tax-exempt interest. Do not include on line 8a . . . 8b refund.
Attach Form(s) B You Spouse

19a Ordinary
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4 .Head
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. . .(with. qualifying
Filing Status
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attach Forms 2b Qualified
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3 Taxable
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local income taxeschild’s
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box. 11 and fullreceived
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. . .widow(er)
. . with. 11
dependent child
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Exemptions
If you have to complete the Qualified
13b Capital
12
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.
} Boxes checked

as shown below. This worksheet

If you did not 14ccanDependents:
be found
Other gains on page 37Attach
or (losses). of theForm
2011 Instructions
4797 . . . to
(2) Dependent’s IRS
. (3) . Form
. .1040.
. Dependent’s . (4)
. ✓. if child . . age 17 14
. under on 6c who:
get a W-2, qualifying for child tax credit • lived with you
see instructions. (1)15 a name
First 15a social security number
IRA distributions .
Last name relationship to you amount(see instructions)
b Taxable . . . 15b • did not live with
you due to divorce
16a Pensions and annuities 16a b Taxable amount . . 2011 . 16b 1040
Form — Line 44
or separation
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12. Enter the smaller 28 Self-employed
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Form 1040, line
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32
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33 Student loan interest deduction . . . . . . . . 33
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DIVIDENDS AND DISTRIBUTIONS

Special Message for Owners of Mutual Funds, UITs, Frequently Asked Questions: Dividends and Distributions
WHFITs, WHMTs and REITs
ERRONEOUS DIVIDEND PAYMENT
If you held one or more of these investments, we may send you a Q. I received an incorrect dividend payment from the paying agent.
revised Tax Information Statement if we did not receive reallocation It was not mine, and I returned the money to you. However, the
information by February 4, 2012. Some issuers may not make their paying agent still sent an IRS Form 1099-DIV to me and will not
final distribution information available until after January. When we correct it. How do I report this on my tax return?
have not received the distribution information from the issuer, we
A. To avoid a mismatch with the IRS, this transaction should be reported
have denoted the income with a symbol (**) on your Tax Information
twice on IRS Form 1040, Schedule B. First, report the amount shown
Statement. Income and interest declared on these investments in
on the IRS Form 1099-DIV from the paying agent on IRS Form 1040,
October, November or December of 2011 is considered received on
Schedule B, line 5. Additionally, report the amount you paid to us as a
December 31, 2011, even if the income or interest was not actually
negative adjustment on IRS Form 1040, Schedule B, line 5. Title this
paid until January (in the case of RICs [or mutual funds] and
negative adjustment “Nominee Distribution.” Refer to page 8 of this
REITs) or February (in the case of WHFITs and WHMTs) of 2012.
guide for additional information on nominee recipients.
Accordingly, these amounts are reported on your 2011 IRS Form
1099. UIT revisions will be mailed by March 15, 2012. Supplemental NONDIVIDEND DISTRIBUTIONS
information regarding the percentages of tax-exempt income on
municipal bond funds by state and the percentage of government
Q. Why are nondividend distributions reported on my statement?
agency, direct federal and foreign source of income for funds will be A. We are required to report these distributions to you and to the
available by March 1, 2012, via a link at mytaxhandbook.com. IRS. Nondividend distributions generally reduce the cost basis of
your investment. This becomes important when you dispose your
investment and need to calculate your gain or loss. However, once
the cost basis of your stock has been reduced to zero, you must report
subsequent nontaxable distributions as capital gains even though we
report them as nontaxable.

> CASH AND NONCASH LIQUIDATION DISTRIBUTIONS > STATE TAX-EXEMPT INCOME
(BOXES 8 AND 9) Tax-exempt income is reported on Form 1099-INT as Tax-Exempt
Generally, liquidation distributions are treated as amounts received from Interest (Box 8), and as Specified Private Activity Bond Interest (Box 9),
the sale or exchange of a capital asset and should be reported on IRS Form if applicable. Box 10 reports the CUSIP number(s), if any of the
8949 and Form 1040, Schedule D (Capital Gains and Losses). tax-exempt bond(s) for which tax-exempt interest is reported in Box 8.
> DIVIDEND REINVESTMENT PLANS > IRS FORM 2439
Your dividends may have been reinvested pursuant to a dividend If you own shares in a mutual fund that paid tax on undistributed
reinvestment plan. Reinvested dividends are reported in this section of long-term capital gains, we will issue IRS Form 2439 (Notice to
your Tax Information Statement as if a cash dividend has been credited Shareholder of Undistributed Long-Term Capital Gains) to you. This
to your account. information is provided to us after the close of the fund’s tax year and
will be sent to you in a separate mailing shortly after the information is
> TAXABLE STOCK DIVIDENDS made available.
Your Tax Information Statement includes the fair market value of preferred
stock dividends, which, according to information provided by the issuer, is
considered dividend income. Note that these amounts also become your
cost basis for determining the gain or loss.

20
DIVIDENDS AND DISTRIBUTIONS

Frequently Asked Questions: Qualified Dividends

1. What is a qualified dividend? Holding Period Example:

A qualified dividend is a dividend that is taxed at the preferential federal Assume the following facts:
tax rate established by the Jobs and Growth Tax Relief Reconciliation
– July 1, 2011—You purchase 200 shares of XYZ company.
Act of 2003, which was enacted in May 2003. Qualified dividends are
generally subject to a maximum tax rate of 15% (or 0% for taxpayers in – July 9, 2011—XYZ’s stock becomes ex-dividend.
the 10% or 15% tax brackets). – July 28, 2011—You receive a dividend from XYZ company, which we
2. Why is it important to differentiate a dividend as qualified report as a qualified dividend on your Tax Information Statement.
or nonqualified? – August 4, 2011—You sell your 200 shares of XYZ company.
It is important to distinguish a qualified dividend from other dividends
In this case, the 121-day period begins on May 9, 2011, and ends on
because qualified dividends are subject to a lower federal tax rate than
September 7, 2011. You held the shares from July 2, 2011, through
ordinary income.
August 4, 2011—a total of 34 days. (Include the date you sold the
3. How do I know if my dividends are qualified dividends? shares, but not the date you acquired them.) Since you held the stock
You can identify which dividends are eligible for qualified dividend status less than 61 days, your dividend on XYZ company is not a qualified
by examining your Tax Information Statement and IRS Form 1099-DIV, dividend, even though we reported it to you as a qualified dividend
Box 1b. You have to then ensure that your specific circumstances (such as on your Tax Information Statement.
the holding period requirement [see question 6 below]) allow the dividend 7. Is there a different holding period for preferred stock?
to be reported as a qualified dividend on your tax return.
Generally, the holding period for preferred stock is the same as stated
4. How are qualified dividends reported on my Tax Information above. However, if your preferred stock dividend is attributable to
Statement? a period greater than 366 days, you must hold the stock for at least
Qualified dividends are reported in the Dividends and Distributions 91 days during the 181-day period, which begins 90 days before
section of your Tax Information Statement, under the column titled the ex-dividend date. These types of dividends pay very rarely. Most
“Qualified Dividends.” likely, your preferred stock dividends would be subject to the 60-day
requirement mentioned above.
5. Are the qualified dividends on my Tax Information Statement
eligible for the reduced rate? 8. How does the holding period apply if I hold mutual fund shares?
Yes. The qualified dividends on your Tax Information Statement are The holding period requirement for mutual fund shares is the same as
eligible for the reduced rate. However, in order for you to report these the 60-day holding period mentioned above. If you do not hold your
dividends as qualified on your tax return, you have to meet certain mutual fund shares for more than 60 days, your mutual fund dividends
requirements, such as the holding period requirement (see question 6 will be nonqualified, even if we report them as qualified on your Tax
below). In addition, if you were short against the box on the dividend’s Information Statement.
ex-dividend date, your dividend will not be considered to be a qualified 9. What if I am “short against the box” when I receive my dividend?
dividend, even though we reported it to you as a qualified dividend. Will it be considered a qualified dividend?
6. What is the holding period requirement? If you are both long and short in the same stock on the date the
You must meet a holding period requirement in order to report your stock becomes ex-dividend, the dividend you received on the long
dividends as qualified dividends on your tax return. These are the position will not be considered to be a qualified dividend. The Tax
important points to note about the holding period requirement: Code contains this rule presumably to prevent someone from taking
deductions on his or her short selling expenses at ordinary rates, and
– You must hold the stock for more than 60 days during the 121-day
then including the income at the preferential rate.
period, which begins 60 days prior to a dividend’s ex-dividend date.
10. Suppose I purchase an option to sell my security (a “put” option)
– The ex-dividend date is the first date following the declaration of a
and, as a result, I have diminished my risk of loss in the security
dividend on which the purchaser of the stock is not entitled to receive
that paid a dividend. Does this affect my holding period?
the next dividend payment. The ex-dividend date is usually two
days before the record date, which is the date set by the company on Yes. Under the Internal Revenue Code (IRC), your holding period
which an individual must own shares in order to be eligible to receive could be reduced if you enter into a transaction that diminishes your
a dividend or capital gain distribution. For mutual fund shares, the risk of loss. This is a complicated aspect of the tax law. You may need
ex-dividend date is usually the reinvestment date. to consult with a tax professional if you have entered into transactions
that could have diminished your risk of loss.
– When counting the number of days you held the stock, include the
day you disposed the stock, but not the day you acquired it.
– The number of days you are considered to hold the stock for this
purpose is reduced for each day you diminish your risk of loss
by entering into certain transactions, such as options or forward
contracts and short-against-the-box transactions.

21
DIVIDENDS AND DISTRIBUTIONS

Frequently Asked Questions: Qualified Dividends

11. How do qualified dividends impact my deduction for margin interest? 15. Are dividends from money market funds or bond funds considered
For most taxpayers, margin interest expense is considered to be an to be qualified dividends?
investment expense, and the deduction for investment expense is limited No. Dividends from money market funds and bond funds are considered
to “net investment income.” In figuring your net investment income for to be nonqualified dividends. However, since distributions from bond
this purpose, you would normally include your interest and dividends. You funds may be classified as capital gain distributions, your income from a
should be aware that any dividend you include in net investment income bond fund may be reclassified. Your Tax Information Statement may reflect
will not be considered to be a qualified dividend eligible for the reduced the symbol “**” next to the description of the bond fund if we have not
federal tax rates. See IRS Form 4952 for information about including your received reclassification information from the fund (see question 14).
qualified dividends as investment income.
16. How do I report qualified dividends on my tax return?
12. How do qualified dividends impact my foreign tax credit? Once you determine which of your dividends are qualified dividends,
Your foreign tax credit is figured on IRS Form 1116. On this form, you you should:
are required to calculate your foreign tax credit limitation, which very
– Enter your qualified dividends on IRS Form 1040, line 9b, and
generally is:
– Figure your tax by completing the Qualified Dividends and Capital
Foreign Income Gain Tax Worksheet on the Form 1040 or 1040A instructions or
x U.S. Tax = Maximum Foreign Tax Credit Allowed
Total Income the Schedule D Tax Worksheet on the Schedule D instructions,
whichever applies.
In figuring your foreign income for purposes of this limitation formula, you
may be required to adjust the amount of foreign qualified dividends used See the Instructions to IRS Form 1040, Schedule D (Capital Gains and
in computing your foreign tax credit. See the other instruction documents Losses) for more information on how to report your qualified dividends.
mentioned in the guide for IRS Form 1116 for more information. 17. Are dividends on preferred stock considered to be qualified dividends?
13. When are foreign dividends reported as qualified dividends? There are generally no distinct rules for determining if dividends on
The IRC contains special rules for dividends paid by a foreign preferred stock qualify for the reduced rates. All of the rules referred to
corporation. A foreign corporation’s dividends are considered qualified if above apply to dividends on preferred stock. However, there are two
the foreign corporation meets any of the following conditions: points you should note:
– The corporation is incorporated in a U.S. possession. – In rare circumstances, the holding period requirement is 91 days,
as opposed to 61 days (see question 7).
– The corporation’s stock is readily tradable on an “established market”
in the United States, such as the New York Stock Exchange or the – Certain preferred securities pay interest, as opposed to dividends.
NASDAQ stock market. Certain other markets, such as the Pink Although these securities may be labeled as stock, they are actually
Sheets or the NASDAQ Over-the-Counter (OTC) Bulletin Board, classified as debt for federal tax purposes. The income from these
are not considered established markets for this purpose. securities will not qualify for the reduced rates and is reported to
you in the 1099-INT or 1099-OID section of your Tax Information
– The company is eligible for the benefits of an income tax Statement. These securities are listed under various names, such as
treaty with the United States that the Treasury Department fixed-rate capital securities (also referred to as MIPs, QUIDs, QUIPs
determines is satisfactory for this purpose and that contains an and TOPrS).
exchange-of-information program.
18. Where can I get more information about qualified dividends?
Exception for Foreign Investment Companies: If a foreign corporation
is a passive foreign investment company, its dividends will not be IRS Publication 550, Investment Income and Expenses, contains
considered to be qualified dividends. useful information on reporting dividend income. This publication is
available at irs.gov or by calling the IRS Forms Distribution Center
14. Are dividends from mutual funds, REITs or UITs and WHFITs at (800) TAX FORM.
considered to be qualified dividends or capital gain distributions?
The character of dividends from mutual funds, REITs, UITs and
WHFITs varies based on the underlying investments that comprise these
funds. We report dividends from these sources based on information
they provide to us. We will report their dividends as nonqualified
when they do not provide any information to us. In this case, we will
denote the income with the symbol “**,” which will appear next to
the description of the company in the 1099-DIV section of the Tax
Information Statement. This symbol means that we have not received
information needed to classify your income and you may receive a
revised Tax Information Statement from us if we receive information
that changes your income classification.

22
CAPITAL GAIN DISTRIBUTIONS
SCHEDULE D Capital Gains and Losses OMB No. 1545-0074
(Form 1040)
If you received capital gain distributions Attach in 2011, your1040
to Form TaxorInformation
Form 1040NR. Statement
See may includefora Schedule
Instructions separate DCapital Gain Distributions section.
(Form 1040). 2011
If your statementDepartment
includes of the Treasury
this section,
Internal Revenue Service (99) your capital gain distributions may consist of Unrecaptured Section
Use Schedule D-1 to list additional transactions for lines 1 and 8. 1250 Gain, Attachment
Section 1202
Sequence No.Gain,
12
Collectibles (28%) Gain
Name(s) or on
shown Long-Term
return Capital Gain Distributions. Your social security number

Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less
A. TOTAL CAPITAL GAIN DISTRIBUTIONS (BOX 2A)  Simplified Reporting Method: If your only capital gains and losses are
Total capital gain distributions (longofterm)
(a) Description propertyfrom a mutual fundacquired (c) Date sold
(b) Date capital gain
(d) distributions,
Sales price andor ifother
(e) Cost nobasis
amount is(f)shown in Boxes 2c through
Gain or (loss)
(see page D-7 of (see page D-7 of
(Example: 100 sh. XYZ Co.)
or REIT are included in this section of your Tax Information Statement (Mo., day, yr.)
2d,
(Mo., day, yr.)
you may
the be able
instructions) to avoid
the filing
instructions)Schedule D by reporting
Subtract (e) from (d)
your
1
in Box 2a. Report total capital gain distributions on Form 1040, capital gain distributions directly on IRS Form 1040, line 13. See the
Schedule D, line 13, regardless of how long you held your investment. Instructions to IRS Form 1040 for more information on this simplified
If your capital gain distributions contain additional classifications, method of reporting capital gain distributions.
your Tax Information Statement will include a separate Capital Gain
C. LONG-TERM CAPITAL GAIN DISTRIBUTIONS
Distributions section (see Boxes 2b through 2d below).
This amount reflects the long-term capital gains distributed by mutual
B. UNRECAPTURED SECTION 1250 GAIN (BOX 2b), funds. This amount is included in the Total Capital Gain Distributions
SCHEDULE D Capital Gains (Box and2a) Losses
column.
OMB No. 1545-0074
SECTION 1202 (FormGAIN 1040) (BOX 2c), COLLECTIBLES (28%)
GAIN (BOXDepartment
2d) of the Treasury
Attach to Form 1040 or Form 1040NR. See Instructions for Schedule D (Form 1040).
Attachment
2011
2 Enter your short-term totals, ifUse any, from D-1
Schedule Schedule D-1,
to list additional transactions for lines 1 and 8.
Internal Revenue Service (99) Sequence No. 12
If your Tax Information
Name(s) line Statement
2 .on .return
shown
contains amounts in
. . . . . . . . . . . . . . . . any of these 2 Your social security number
sections, see the3Instructions for IRS Form 1040, Schedule D
Total short-term sales price amounts. Add lines 1 and 2 in(Capital
Gains and Losses) columnfor information
(d) . . on . how
. . to. report
. . this
. . income.
. . . . . . 3
Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684,price
(d) Sales 6781, (e)
and 8824
Cost 4
or other basis
(a) Description of property (b) Date acquired (c) Date sold (f) Gain or (loss)
(see page D-7 of (see page D-7 of
5 Net short-term
(Example: 100gain orCo.)
sh. XYZ (loss) from partnerships,
(Mo., day, yr.) S (Mo.,
corporations,
day, yr.) estates, and
the instructions)
trusts from
the instructions)
Subtract (e) from (d)
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1
6 Short-term capital loss carryover. Enter the amount, if any, from line 10 of your Capital Loss
SAMPLE STATEMENT

Carryover Worksheet on page D-7 of the instructions . . . . . . . . . . . . . 6 ( )

7 Net short-term capital gain or (loss). Combine lines 1 through 6 in column (f) .B . . . . 7
A C
Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year -
(d) Sales price (e) Cost or other basis
(a) Description of property (b) Date acquired (c) Date sold (f) Gain or (loss)
(see page D-7 of (see page D-7 of
(Example: 100 sh. XYZ Co.) (Mo., day, yr.) (Mo., day, yr.) Subtract (e) from (d)
XYZ REIT INC CLB the instructions) the instructions)
8
ABC FUND A

2 Enter your short-term totals, if any, from Schedule D-1,

line 2 . . . . . . . . . . . . . . . . . . 2
3 Total short-term sales price amounts. Add lines 1 and 2 in
column (d) . . . . . . . . . . . . . . . . 3

4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 4
SCHEDULE D
5 Net short-term CapitalSGains
gain or (loss) from partnerships, and estates,
corporations, Lossesand trusts from OMB No. 1545-0074
(Form 1040) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule(s)
6 Short-term capital loss carryover.
Attach to Form Enter
1040 orthe amount,
Form 1040NR. if any, from See line 10 of your
Instructions Capital Loss
for Schedule
5
D (Form 1040). 2011
9 Enter
Department your
of the long-term
Treasury totals,
pageifD-7any, from Schedule D-1, 6 ( Attachment )
InternalCarryover Worksheet
Revenue Service (99) on of the
Use Schedule instructions . . . transactions
D-1 to list additional . . . . for . lines
. . 1.and. 8.. Sequence No. 12
line 9 . . . . . . . . . . . . . . . . . . 9
SAMPLE TAX FORM

Name(s) shown on return Your social security number

10
7 Total long-termcapital
Net short-term sales price amounts.
gain or Add lineslines
(loss). Combine 8 and 9 in
1 through 6 in column (f) . . . . . 7
column (d) . . . . . . . . . . . . . . . . 10
Part
11 II
PartGain
I fromLong-Term
Short-Term
Form 4797, Capital
Capital Gains
Gains and
Part I; long-term and Losses—Assets
gain from Forms 2439Held
Losses—Assets Held More
and 6252;One Year Than
and orOne Year
Less
long-term gain or
(loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . (d) . Sales
(d)
. .price
Sales
. . (e)
price
. Cost
(e)
. or
Cost
11
. other basis
or other basis
(a) Description of property
(a) Description of property (b)
(b) Date acquired (c)
Date acquired (c) Date
Date sold
sold (f)
(f) Gain
Gain or
or (loss)
(loss)
(see
(see page
page D-7 of (see page
page D-7
D-7 of
12 Net long-term
(Example: 100gain
sh. or
XYZ (loss)
Co.)
(Example: 100 sh. XYZ Co.) from partnerships,
(Mo., day, yr.)
(Mo., day, yr.) S corporations,
(Mo., day, yr.)
(Mo., day, yr.) estates, and
D-7 of trusts
the instructions)
(see from of
the instructions)
Subtract
Subtract (e)
(e) from
from (d)
(d)
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . the . . . . . the
. instructions) . instructions)
. 12
8
1
13 Capital gain distributions. See page D-2 of the instructions . . . . . . . . . . . . 13 625 00
14 Long-term capital loss carryover. Enter the amount, if any, from line 15 of your Capital Loss
Carryover Worksheet on page D-7 of the instructions . . . . . . . . . . . . . 14 ( )
15 Net long-term capital gain or (loss). Combine lines 8 through 14 in column (f). Then go to Part
III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
For Paperwork Reduction Act Notice, see Form 1040 or Form 1040NR instructions. Cat. No. 11338H Schedule D (Form 1040) 2011

9
2 Enter your short-term
Enter your long-term totals,
totals, ifif any,
any, from
from Schedule
Schedule D-1,
D-1,
line
line 9
2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 9
2
10
3 Total
Total long-term
short-termsales
salesprice
priceamounts.
amounts. Add Add lines
lines 8
1 and
and 92 in
in
column
column (d)(d) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 10
3
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or
4 (loss) from Forms
Short-term 4684,
gain from 6781,
Form and
6252 8824
and . . .gain
short-term . or
. (loss)
. . from
. . Forms
. . 4684,
. . 6781,
. . and
. . 8824
. 11
4
12
5 Net long-term gain
Net short-term gain or
or (loss)
(loss) from
from partnerships,
partnerships, SS corporations,
corporations, estates,
estates, and
and trusts
trusts from
from
Schedule(s)
Schedule(s) K-1
K-1 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 12
5 23
6 Short-term capital loss carryover. Enter the amount, if any, from line 10 of your Capital Loss
MARGIN INTEREST EXPENSE

Total margin interest expense charged to your account during 2011 is reported in the Summary of Transactions We Do Not Report to the
IRS section of your Tax Information Statement.

A. Margin Interest Expense

Margin interest expense may be characterized as investment interest expense, The amounts shown in the example below assume no carryover
the deduction of which is limited to net investment income. This limitation of investment interest expense from 2010, and no disallowed investment
is calculated on IRS Form 4952, Investment Interest Expense Deduction. interest expense during 2011. For illustrative purposes, $700 of net
Margin interest expense must be paid the year in which it is deducted. If investment income was assumed on the sample tax form below.
your investment interest expense is deductible, this is reported as an itemized
deduction on IRS Form 1040, Schedule A, line 14.
SAMPLE

Form 4952 Investment Interest Expense Deduction

OMB No. 1545-0191

2011
Department of the Treasury Attachment
Internal Revenue Service (99) Attach to your tax return. Sequence No. 51
Name(s) shown on return Identifying number

Part I Total Investment Interest Expense

1 Investment interest expense paid or accrued in 2011 (see instructions) . . . . . . . . 1 662 50
2 Disallowed investment interest expense from 2010 Form 4952, line 7 . . . . . . . . . 2
3 Total investment interest expense. Add lines 1 and 2 . . . . . . . . . . . . . . 3 662 50
SAMPLE TAX FORM

Part II Net Investment Income

4a Gross income from property held for investment (excluding any net 700 00
gain from the disposition of property held for investment) . . . 4a
b Qualified dividends included on line 4a . . Itemized . . . . .Deductions
SCHEDULE A OMB No. 1545-0074
. . 4b 700 00
(Form 1040)
c Subtract line 4b from line 4a
d Netof gain
Department from the disposition
the Treasury
. . . . . . . . . . . . . . . . . . . . . .
of property
Attach to Formheld 1040.for investment See 4d for Schedule A (Form 1040).
. .Instructions
4c
Attachment
2011
Internal Revenue Service (99) Sequence No. 07
e Enter the smaller of line 4d or your net capital gain from the
Name(s) shown on Form 1040 Your social security number
disposition of property held for investment (see instructions) . 4e
f Subtract line 4e from line 4d . . . . . . . . . . . . . . . . . . . . . . 4f
Caution. Do not include expenses reimbursed or paid by others.
Medical
g Enter the amount from lines 4b and 4e that you elect to include in investment income (see
1 Medical
. . . and . .dental
. . expenses
. . . (see . . page . . A-1). .. .. .. .. .. . . 1. . . . . .
and instructions) 4g
h Investment2 income.
Dental Enter amount
Add linesfrom4c,Form
4f, 1040,
and 4g line .38 . .2 . . . . . . . . . . . . . . 4h 700 00
Expenses
5 Investment3 expenses
Multiply line
(see2instructions)
by 7.5% (.075) . .. .. .. .. .. .. .. .. .. .. . . 3 . . . . . . 5
4 Subtract line 3Subtract
from lineline
1. If5line 3 is more
4h.than lineor1,less,
enterenter
-0- .-0-. . . . . . . . . . . . . .
6 Net investment income. from line If zero 6 4 700 00
Taxes
Part III You 5 State and local (check
Investment Interest Expense Deduction only one box):
Paid
7 a Income taxes, or . . . . . . . . . .
Disallowed investment interest expense to be carried forward to 2012. Subtract line 6 from
5
b General sales taxes
(See line 3. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 7
6 interest
Real estate taxes deduction.
(see page A-5) Enter. the . smaller
. . . of. line . 3. or. 6. See6instructions . .
8 A-2.)
page Investment expense 8 662 50
7 New motor vehicle taxes from line 11 of the worksheet on
Section references are back. Skip this line if you checked
to the Internal rules apply box 5b . . .interest,
to investment . . personal
. 7 ● Any interest expense that is capitalized,
SCHEDULE
Revenue CodeA unless8 otherwise noted.
Other taxes. List type and interest,Itemized
amount Deductions
trade or business interest, home such as construction interest
OMB No.subject to
1545-0074

2011
(Form 1040) mortgage interest, and passive activity section 263A.
8
General Instructions interest. See Pub. 535, Business Expenses.
9 Add lines 5 through 8 . . . . . . . . . . . . . . . . . interest
● Interest expense related to tax-exempt
. . . income. . under9 section 265.
Department of the Treasury Attach to Form 1040. See Instructions for Schedule A (Form 1040).
SAMPLE TAX FORM

Purpose
Interest
Internal of Form
Revenue Service10(99) Home mortgage interest andSpecific points reportedInstructions
to you on Form 1098 10
Attachment
● Interest expense, disallowed
Sequence No. 07
under section
Use Form
Name(s) 4952
shown
You Paid to figure
on Form 1040the amount of Your social
264, on indebtedness with security
respect number
to life
11 Home mortgage interest not reported to you on Form 1098. If
investment interest expense you can deduct Part I—Total Investment insurance, endowment, or annuity contracts
(See paid
youtocan thecarry
person from whom you bought the home, see page
for 2011 and the amount
Caution.
forward to future years.A-7
page A-6.) and
Your Do
investment
Interest
show that person’s name,reimbursed
not include expenses
Expense
identifyingor no.,paid
andbyaddress
others.
issued after June 8, 1997, even if the
Medical proceeds were used to purchase any property
interest expense deduction is limited to your Line
1 Medical and dental expenses (see page A-1) . . . . . 1 1 held for investment.
and
net investment income.
Note. Enter the investment interest expense paid or Property held for investment. Property held
2 Enter amount from Form 1040,accrued line 38 during 2 the tax year, regardless of 11
DentalFor more information, see Pub. 550,
Personal for investment includes property that
Investment
interest is Income 312and
Multiply
Points
Expenses. line
not 2reported
by 7.5%to(.075) youwhen on. Form . .incurred
you . . the
1098. . indebtedness.
See . page
. . A-7 . for 3 produces income, not derived in the ordinary
Expenses
not 4 Subtract
specialline 3 from
rules . . line . 1.. If .line . 3 is
Investment. more . than
. interest. line . 1, .enter
. expense is -0-
. . . paid
. interest . 12.or . . . . of
course . a .trade4or business, from interest,
Who Must File
deductible. accrued on a loan or part of a loan that is dividends, annuities, or royalties. It also
Taxes You 513State and local
Qualified mortgage
If you are an individual, estate, or a trust, you
(check onlyallocable
insurance onepremiums
box): (see page A-7)
to property held for investment (as
. 13
includes property that produces gain or loss,
Paid
must file Form 4952 a Investment
14to claimIncome taxes,
interest.
a deduction or Form
forAttach .4952
defined . onif. this
. page).
. .(See
required. . page
. . A-8.) . 514 662 50
not derived in the ordinary course of a trade
15b Add
your investment interest lines 10 through
General
expense. sales taxes 14 . .Include . . investment
. . . interest. . . expense . . . . . . . business,
or . . . from . 15 disposition of property
the
(See
Exception. page reported to . you. on. Schedule . K-1. from
. ora 6 that produces these types of income or is
Gifts
page to You do
A-2.) 616not
Realhave
estate
Gifts to file
by cashFormor
taxes (seecheck. A-5)
If you. made any . gift
. of
partnership or an S corporation. Include
$250 held for investment. However, it does not
4952 if all of the following apply.
Charity 7 more, see page
New motor vehicle taxes from
● Your investment income from interest and
A-8 . . . . .
line 11 of
amortization . .
ofbond . .
the worksheet. . .
premium on taxable on. 16 include an interest in a passive activity.
If you made a 17 back.
OtherSkip than
ordinary dividends minus any qualified thisbyline
cashif you
or checked
check. bonds If box
purchased
any 5b
gift of. .
after
$250 . or .
October .
more, 22,. 1986,
see 7but Exception. A working interest in an oil or
dividends a 8than
is more
gift and got Other
your taxes.
page A-8. You
investment List must
type and before
amount
attach FormJanuary
8283 if1,over 1988, $500unless. you. elected
. to
17 gas property that you held directly or through
24 interest
benefit expense.
for it, offset amortizable bond premium against the an entity that did not limit your liability is
18 Carryover from prior year interest . . payments
. . . on . the. bond.
. . A. taxable . 818 property held for investment, but only if you
Youpage
●see do not
A-8. have any other deductible
919Add
Addlines 5 through
lines 8 . 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 through
ORIGINAL ISSUE DISCOUNT (OID)

IRS Form 1099-OID, Schedule B (Interest and Ordinary Dividends)

The amounts in this section of your Tax Information Statement reflect the OID reported to the IRS. OID is the difference between the stated
redemption price at maturity and the issue price of a debt instrument. A debt instrument, such as a bond or note, generally has an OID when
the instrument is issued for a price that is less than its stated redemption price at maturity. OID is a form of interest. If you own a taxable debt
obligation that was issued with an OID, you may be required to include a portion of the OID in your gross income for each year you hold the
obligation, even if you did not receive any cash payments.

Tax Return Reporting Instructions The OID adjustment will vary for each investor and depends on how
> INCOME REPORTED INDIVIDUALLY much was paid for the OID bond and when it was acquired. See the
Sample Calculation of an OID Adjustment on page 26 for an explanation
As required by federal tax law, we report the income individually for each of the OID adjustment.
OID obligation that was held in your account during the year. These
amounts are identified on your Tax Information Statement and should
be reported separately on your tax return. It is important that you report Frequently Asked Questions: OID
these amounts on your tax return in the same way they appear on your
Tax Information Statement. The IRS may attempt to match these items OID REPORTING
to your tax return and may contact you if unable to do so. Q. Why is OID being reported? I did not receive a cash payment from
my debt instrument during 2011.
> OID ADJUSTMENTS A. If a taxable debt instrument is issued with an OID, we are required
The amount of OID reported on your Tax Information Statement may to report a portion of that OID each year the debt instrument is held
not be the actual amount on which you should pay tax. We calculated in your account. You may be able to adjust the amount we report
the OID based on the information available in our records. However, to you based on your purchase price. OID applies regardless of how
because we may not know all of the facts concerning your debt obligation, much cash you received with respect to your debt instrument. IRS
we frequently report OID based on rates found in IRS Publication 1212, publications 550, Investment Income and Expenses, and 1212, Guide
Guide to Original Issue Discount (OID) Instruments. If the applicable to Original Issue Discount (OID) Instruments, are helpful when
rates are not listed online for IRS Publication 1212, or if circumstances reporting OID on your tax return.
dictate, we use rates that we obtain from an independent third party. We Q. I owned a U.S. Treasury inflation-indexed security (TIP). Do these
indicate whether we used these rates by placing an asterisk (*) beside the securities generate OID?
amount of OID (either in Box 1 or Box 6 of the 1099-OID section of A. There are two components to the reporting on TIPs. First, the
your Tax Information Statement). If these rates were used, or if you paid principal value on these securities fluctuates daily according to
an acquisition premium, you may be required to recalculate and adjust the changes in the Consumer Price Index. This feature often generates
OID reported on your Tax Information Statement. OID reporting. OID accruals are reported as OID on U.S. Treasury
obligations on IRS Form 1099-OID. Second, the coupon payments
You should report the adjustment, if any, separately on your tax return. from these securities are reported as interest on U.S. Savings Bonds
As illustrated in the example on the following page, the OID adjustment and Treasury Obligations (Box 3) in the 1099-INT section of your
should be reported as a negative amount on IRS Form 1040, Schedule B, Tax Information Statement. Coupon payments are calculated by
line 1, just beneath the area where you report the amounts listed on your multiplying the coupon rate, which does not change over the life
Tax Information Statement. of the security, but by the adjusted principal amount.

> STRIPPED U.S. GOVERNMENT DEBT OBLIGATIONS Q. I owned a fixed-rate capital security. Do these securities
generate OID?
If you held a stripped U.S. government debt obligation (STRIP) during
2011 and purchased it through our firm after 1990, we calculate the A. Fixed-rate capital securities (also commonly referred to as MIPs, QUIDs,
actual OID. In most cases, no adjustment to the amount on the Tax QUIPs and TOPrS) are classified as debt instruments. If they were
issued prior to August 13, 1997, they were almost always issued with
Information Statement should be required. However, the FIFO method
OID. Securities issued on or after August 13, 1997, may contain OID;
was used to determine your cost basis and to calculate the OID. If you this feature varies according to the issuer. In either case, OID results
elect to use the specific identification method to determine your cost basis, even when these securities are issued at par. If the security was issued
the amount of the OID may vary and may need to be recalculated. with an OID, we report the security’s cash payments in the Return of
Principal Distributions section of your Tax Information Statement (see
page 28) and the daily accrual of OID in the 1099-OID section of your
Tax Information Statement.

25
ORIGINAL ISSUE DISCOUNT (OID)

Information Reported on IRS Form 1099-OID

A. ACCRUAL BEGIN/ENTRY DATE you in the Other Periodic Interest (Box 2) column of the 1099-OID
Income earned on an OID instrument is calculated separately for each section of your Tax Information Statement. Also, when a REMIC is
accrual period. Although amounts are reported to the IRS on an annual issued with an OID, we report the accrued interest earned on the REMIC
basis, we report income to you for each accrual period. The date each as “other periodic interest.” As required by the IRS, we report other
accrual period begins is displayed in this column. If your account was periodic interest separately for each OID obligation that was held in
transferred to us in 2011, the beginning accrual date will be the date we your account during 2011. Accordingly, you should report the other
received your securities in connection with the transfer. periodic interest from each OID obligation separately on your tax return.

B. DAILY OID RATE PER $1,000 E. OID ON U.S. TREASURY OBLIGATIONS (BOX 6)
This amount is the daily accrual rate of OID. This rate was obtained from Amounts in this column reflect the OID on each U.S. Treasury obligation
IRS Publication 1212 or from an independent third party. However, if for the part of the year during which it was owned. Report
the rate pertains to a STRIP purchased through our firm after 1991, we the total for each U.S. Treasury obligation separately on IRS Form
calculate and use an actual rate (see the Stripped U.S. Government Debt 1040, Schedule B, line 1. This OID is exempt from state and local
Obligations section on page 25). income taxes and is not included in Box 1.

C. OID (BOX 1) F. INVESTMENT EXPENSES (BOX 7)

Amounts in this column reflect the OID on each obligation for the part This represents your share of investment expenses of a single-class
of the year in which it was owned. Report the total for each security REMIC. Your share of UIT, WHFIT and WHMT expenses are
separately on IRS Form 1040, Schedule B, line 1. OID on U.S. Treasury also reported in Box 7. If you file IRS Form 1040, you may deduct
obligations is not included in this column. these expenses (subject to the 2% limit) on IRS Form 1040, Schedule A,
line 23. This amount is included in Box 1, Box 2 or both.
D. OTHER PERIODIC INTEREST (BOX 2)
If you held a bond that was issued with an OID component, and also
made cash payments of interest, then we report the cash payments to

2011 Form 1099-OID ORIGINAL ISSUE DISCOUNT OMB No. 1545-0117

(For individuals, report details on Form 1040; Schedule B; Line1.)

A B C D E F
SAMPLE STATEMENT

OID on U.S.
Accrual Daily OID Original Issue Other Periodic Federal Income Treasury Investment
Lot Lot Begin/ Days Rate Discount Interest Tax Withheld Obligations Expenses
Description No. Quantity Entry Date Held Per $1,000 (Box 1) (Box 2) (Box 4) (Box 6) (Box 7)
CERTIFICATES 1 8,000 01/01/2011 135 .1277391 137.96
ACCRUAL
TREAS SECS SER-Z INT
CUSIP: 12345678ABI
CERTIFICATESACCRUAL 1 6,000 01/01/2011 365 .1113287 243.80*
TREAS SECS SER-J INT
CUSIP: 2345678MN8
FNMA GTD REMIC PASS ***** For a Detailed Breakdown ***** 20.30*
THRU CTF REMIC ***** See the Additional Written Statement *****
SAMPLE TAX FORM

Pershing LLC, 13-2741729 137 96

Pershing LLC, 13-2741729 243 80
Pershing LLC, 13-2741729 20 30
Less: OID Adjustment (125 00)

26
CALCULATION AND ADJUSTMENT OF ORIGINAL ISSUE DISCOUNT (OID)

Since the amount of OID we report on your Tax Information Statement may not be the amount on which you should pay tax, you should calculate your OID
adjustment. To calculate the OID adjustment, you should familiarize yourself with two terms: acquisition premium and adjusted issue price. Then, read the
following sample calculation of an OID adjustment. See page 26 for an illustration of how an OID adjustment is reported on a tax return.

> ACQUISITION PREMIUM

Sample Calculation of an OID Adjustment
The acquisition premium is the excess of the purchase price of a debt
instrument over its adjusted issue price on the date of purchase. If your In the following example, assume XYZ Company issued an eight-year
purchase price includes an acquisition premium, you may be able to bond on January 1, 2005. The bond’s initial issue price was $6,000,
its maturity value was $10,000 and it currently pays no interest.
offset a portion of the acquisition premium against the OID that we
Accordingly, the bond was issued with $4,000 of OID ($10,000 less
report to you.
$6,000). Assume that the OID accrues on a straight-line basis (in
> ADJUSTED ISSUE PRICE many cases, however, the OID accrues on a constant-yield basis).
The adjusted issue price of a debt instrument is generally equal to its On January 1, 2011, you purchased the bond for $8,500 and held the
bond in your account for the entire year. We report $500 of OID in
original issue price, plus all previously accrued OID. If you need to
2010 with respect to this particular security. You should go through
determine a bond’s adjusted issue price at any point, you may need
the following steps to determine how to report the OID adjustment
to contact the bond’s issuer. on your tax return.
Step 1: Do you have an acquisition premium with respect to the
UITs XYZ bond? If not, simply report the amount indicated on
Your Tax Information Statement may reflect OID from a UIT. See your Tax Information Statement as interest income on
the Special Message for Owners of Mutual Funds, UITs, WHFITs, IRS Form 1040, Schedule B. If you do have an acquisition
WHMTs and REITs on page 16 for more information on how income premium, you should offset the OID we reported to you by a
from UITs is reported on your Tax Information Statement. portion of your acquisition premium.
Step 2: How do you calculate acquisition premium? Acquisition
premium is the difference between the bond’s adjusted
issue price on the date of purchase and the amount you
paid for the bond. In this case, the calculated adjusted issue
price on January 1, 2011, was $8,000. Since you paid $8,500
for the bond, you acquired it with an acquisition premium of
$500. When you perform your actual calculation, you may
need to contact the issuer to determine what the bond’s
adjusted issue price was on the date of purchase.
Step 3: What portion of your acquisition premium may be used
to offset the OID that was reported on your statement?
In general, the OID should be reduced by a fraction
determined as follows:
The numerator is the cost of the debt instrument, less
its adjusted issue price on the date of purchase. The
denominator is the maturity value, less the adjusted issue
price on the date of purchase. In our example, the fraction
would be computed as follows:
($8,500 – $8,000) $500
= = 25%
($10,000 – $8,000) $2,000

Accordingly, you should report a total OID of $500, less

25%, to arrive at an amount of $375, on which tax would be
required to be paid. Even though the net amount of the OID
in this case is $375, you should report the gross amount of
$500 and the OID adjustment of $125. The reason for this
is that the IRS will attempt to match the $500 we report on
your Tax Information Statement to the amount you reported
on your tax return. If you only report the net amount of
$375, the IRS may not be able to make a match and may
contact you about the discrepancy.

27
INFORMATION REPORTED ON IRS FORM 1099-MISC
SCHEDULE E Supplemental Income and Loss OMB No. 1545-0074

Summary of Miscellaneous
(Form 1040) Income (From rental real estate, royalties, partnerships,
2011
S corporations, estates, trusts, REMICs, etc.)
1. RENTS ▶ Attach to Form 1040, 1040NR, or3. OTHER INCOME
Department of the Treasury Attachment
Internal Revenue Service (99) Form 1041. ▶ See separate instructions. Sequence No. 13
Name(s) shown on return Your social security number
Box 1 of Form 1099-MISC reflects rental income that you earned from Amounts reflected in Box 3 of IRS Form 1099-MISC should be reported
real estate activities, royalty trusts and any surface royalties generated from as “other income” on IRS Form 1040.
A Did you make any payments in 2011 that would require you to file Form(s) 1099? (see instructions) Yes No
strip mining or other activities.
B If This
“Yes,” did amount
you or should
will you file be
all reported
required on
Formsyour
1099? Yes No
IRS Form 1040, Schedule Part E.I Please
Income
consult or Loss
withFromyourRental Real Estate to
tax professional
4. SUBSTITUTE
and Royalties Note. If you are inPAYMENTS IN LIEU
the business of renting personalOF DIVIDENDS
property, use

determine the proper treatment of each

this income. OR INTEREST
Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.
Caution. For rental property listed on line 1, check the box in the last column only if you owned that property as a member of a
qualified joint venture (QJV) reporting income not subject to self-employment Box 8 of tax.IRS Form 1099-MISC reflects payments that we received on
2. ROYALTIES 1 Physical address of each property–street, city, state, zip Type–from yourlist behalf
2 Forin lieu
each of real
rental dividends Fair
or tax-exempt
Rental PersonalinterestQJV
as the result of a
Gross royalties before reductions for fees, commissions and expenses are below
loan of your
estate property listed,
securities.
report the number Substitute
of
Days
payment Use Days
is a payment in lieu of (a) a
A days rented at fair rental A
reported in Box 2 of IRS Form 1099-MISC. This amount should be dividend or (b)andtax-exempt
value days with interest to the extent that interest (including
B B
reported on IRS Form 1040, C Schedule E, of IRS Form 1040. Please note personal use. See
OID) hasinstructions.
accrued while the securities
C were on loan. This amount should
that the amount reported Type does not include surface royalties (which are
of Property: be reported as “other income” on your income tax return.
1 Singleroyalties
reported in Box 1) or timber Family Residence 3 Vacation/Short-Term
made on a pay-as-you-cut Rental 5 Land
contract. 7 Self-Rental
2 Multi-Family Residence 4 Commercial 6 Royalties 8 Other (describe)
Properties
Income:
A B C
Form 1099-MISC 2011 Miscellaneous Income (OMB No. 1545-0115)
SAMPLE

Box
3a Merchant card and third party payments. For 2011, enter -0- 3a Amount
1 Rents .b. . . . .Payments
. . . . . . . . . . . . .not
. . . . reported
. . . . . . . . . . . .to
. . .you
. . . . . on
. . . . line . . . ... . . .. . . . .. . . ... . . .. . . . . . . . 3b
. . . . . 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.00
2 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
4 Total not including amounts on line 3a that are not
3 Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
income (see instructions) . . . . . . . . . . 4
4 Federal Income Tax Withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
8 Expenses:
Substitute Payments in Lieu of Dividends or Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
5 Advertising . . . . . . . . . . . . . . 5
6 Auto and travel (see instructions) . . . . . . . 6
SCHEDULEOf
Summary E Transactions We DoSupplemental Income andenclosure
Loss for additional information)
OMB No. 1545-0074
7 Cleaning and maintenance . . . . Not
. .Report
. . . To The 7 IRS (See
(Form 1040)
8
Municipal Department
Original
9 Issue
Insuranceof the Discount
Treasury
(From rental real estate, royalties, partnerships,
Commissions. . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
S corporations, estates, trusts, REMICs, etc.)
8
9
2011
Attachment
Amount

OriginalInternal
Issue Discount
Revenue– Service Subject (99) to Alternative Minimum ▶ Attach Tax . . . . . . Form . . . . . . . . . . . . . 1040NR, . . . . . . . . . .or . . .Form . . . . . . 1041.
. . . . . . .▶ . . See
. . . . . separate
. . . . . . . . . . .instructions.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . Sequence . . . . . . . . . . No. . . . .13 . . . . . 13.75
Original10 Legal–and
Issue Discount Notreturn othertoprofessional
Subject Alternative Minimum feesTaxto . . . .. . . . .. .1040,. .. . . ... . . .. . . ... . . . . . . 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Your . . . . . social
. . . . . . security
. . . . . . . . .number . . . . . . . . . . 240.48
Name(s) shown on
11
Total Municipal Management
Original Issue Discount fees . . . . . . . . . . . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . . . . . 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,379.23
Non-Reportable
12 Distributions
Mortgage interest paid to banks, etc. (see instructions) 12
A Cash Distributions
13 DidOther
Partnership you make
1040 interest.
. . any . . . . payments
. Department . . . . in
. . . . . .of. .the
.. . . .2011
. . . . . . . . . that
.. . . .. . . ... . Treasury—Internal
. . . . . would
.. . . .. . . ... . .Revenue
. . . . . . . .require
.. . . ... . . .. . . you
.. . . ... . . Service . . . . . to
. . . . . . . . . . .(99) . . . . . file
13 Form(s) 1099?. . (see
. . . . . . . . . . . . . . . . . . . . . . . . . . .instructions)
2011
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes . . . . . . . . . . No . . . 420.00
Form

Trust Distributions . . . . . . . . . . . . . . . . . . .
14
Return of
B If “Yes,” did you U.S. or will Individual
you file all required IncomeForms Tax1099?
Distributions. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . ... . . .. . . ... . . .. . . ... . . .. . . ... . . . . . . 14
Repairs.
Principal
Return .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..OMB
. . . . . . . . . . . . . . . . . . . . . . .IRS
No. 1545-0074
. . .Use
. . . Only—Do
. . . . . . . . not . . . write
. . . . or. . staple
. Yes
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300.00
. . . . .in. this. . . .space.
. . . 100.00
No
15Part
For the I
year
Supplies
Total Non-Reportable Jan. Income
1–Dec.
Distributions. 31, or
2011, Lossor other From
tax year Rental
beginning Real Estate
. . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . . . . . . . . . . . . . . . . .15
and Royalties , 2011, Note. ending If you are in the , 20 business of renting See personal
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 820.00 separate property,
instructions. use
Equity OptionsYour first nameSchedule and initial C or C-EZ (see instructions). Last nameare an individual, report farm rental income or loss from FormYour
If you 4835social on page security 2, line number 40.
16 Transactions
Taxes . . . . . . . . . . . . . . . . 16
Caution.
Cost of Equity Option For Purchases. each. . rental . . . . . . . property
. . . . . . . . . . .listed. . . . . . .on . . . .line
. . . . 1, . . . check
. . . . . . . .the . . . . box . . . . . in . . . the
. . . . .last . . . . column
. . . . . . . . . .only . . . . . if . . you
. . . . . owned. . . . . . . . . that . . . . . property
. . . . . . . . . . .as . . .a . . member
. . . . . . . . . . .of a
12,112.50
17 Proceeds
Equity Option Utilities . . ... . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . ... . . .. . . . . . . .17
. Expirations
andspouse’s . . . . . . . . . . . . . . .tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Spouse’s . . . . . . . . social
. . . . . .security. . . . . . . number
. . . . 7,588.99
qualified joint
If a joint return, venturefirst (QJV) namereporting
and initial income Last not name subject to self-employment
Securities 18
PurchasedDepreciation expense or depletion . . . . . . . 18
Net Cost191of Securities
Physical
Other Purchased address
(list) ▶ . of . . . each
. . . . . .property–street,
. . . . . . . . . . . . . . . . city, . . . . . state,
. . . . . . zip . . . . Type–from
. . . . 19 . . . . . . list . . . . . 2. . . For . . . .each
. . . . rental . . . . . .real . . . . . . . . . . . . Fair . . . . . Rental
. . . . . . . . . Personal . . . . . . . . . 352,329.56 QJV
Home address
Accrued Interest Purchased (number and street). If you have a P.O. box, see instructions. below estate property listed, Apt. no. Days Use Days above
20 Total expenses. Add lines 5 through 19 . . . . . 20 report the number of ▲ Make sure the SSN(s)
U.S. Corporation
U.S.21
A
Subtract
Government
. . .
Office building: 1111 Business Avenue
. . . . .
. . . . . . .line
. . . . .
. . . . . 20
. . . .
. . . . from
. . . . . . . .
. . . . . . .line
. . . .
. . . . . 4.
. . .
. . . If
. . . .
. . . result
. . . . . . . . . . . . .
. . . . . . . .is. . .a. . . .(loss),
. . . . . . . .
. . . . . . . .see
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .value
. . . . . . . . . . . . .
days rented at fair rental A
. . . . . and
. . . . .days
. . . . .
. . . . . with
. . . . . . . . . . . . . . . . . . . . . . . .
and . . . .
on . .
line. . . .
6c . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,041.70
.
are . . . . . .
correct. . . 728.33
B
instructions
U.S. Government Agencies. . .to Anytown, USA
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
. . .find
. . . . . out. . . . .if. . you
. . . . . must. . . . . . .file . . . .Form
. . . . . . . 6198 . . . . . . . . ... . . . . . . 21
C Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .instructions.
. . . . . . . . . . . . . . . . .personal . . . . . . . . .use. . . . . .See B Presidential Election Campaign
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.00
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . .C . . . . . . .Check . . . . .here. . . if. you,
. . . .or. .your . . . spouse
. . . . . .if .filing
. . 250.00
22Foreign Deductible rental real estate loss after limitation, if any, jointly, want $3 to go to this fund. Checking
Tax-Exempt
Type of . . . . . . .
Property:
country . . . . .
name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . .
province/county . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Foreign
. . . . . . postal
. . . . . .code . . . . . .a.box . . . below
. . . . . . . . . . . . . . . . . . . . . . . 256.67
on Form 8582 (see instructions) . . . . . . . 22 (
Tax-Exempt – Specified Private Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . refund.
) ( ) ( will not change your tax or )
. . . . . . . . . . . . . . . . You . . . . . . . . Spouse
. . . . 170.00
1 Single
23a Family all Residence 3 Vacation/Short-Term Rental 5 Land 7 Self-Rental
Total Accrued Total
Interest ofPurchased amounts . . . . . . reported
. . . . . . . . . on . . . .line . . . .3a . . .for . . . all
. . . rental . . . . . . . . . . . . ... . ... . ... . ... . . . . . 23a
. . . . . . properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,506.70
2 b
Margin Interest Multi-Family
Expense Charged Residence to 1Your Single
Account 4
. . . Commercial
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . Royalties
. . . . . . . . . . 4
. . . . . . . 8
Head
. . .
23bOther
. of
. . household
. . . (describe)
. . . . . .(with
. . . . qualifying
. . . . . . . person).
. . . . . . . (See
. . . . instructions.)
. . . . . . . . . . If662.50
FilingTotal Status of all amounts reported on line 3a for all royalty properties . . . .
SAMPLE TAX FORM

2 Married filing jointly (even Properties

c Total of all amounts
Income: reported on line 4 for allifrental only one had income) . . . .
properties the qualifying person
23c is a child but not your dependent, enter this
Check only one 3 Married filing separately. A child’s name here. ▶ B C
d Total of all amounts reported on line 4 for allEnter royalty spouse’s properties SSN above . . . . 23d
box.
3a Merchant card and third and full name
party payments. here. ▶ For 2011, enter -0- 3a 5 Qualifying widow(er) with dependent child
e Total of all amounts reported on line 12 for all properties . . . . . . 23e

4
g
fb Total
Payments
Exemptions not6a
reported
of all amounts
Totalofnot
Total
to you
reported
b
onon
Yourself.

all including
amounts
line
line
Spouse
amounts
reported
183a
If someone
for.can
on line
all. claim
properties
. . 3a. that
20 for. allare
3b. . . do
. .you. as a.dependent, . not
99 23f
. check
00box 6a
. .not. . . . . . . . . . . . . . . . . .
properties . . . . . . 23g
. . . . .
No. of children
} Boxes checked
on 6a and 6b

c Dependents: 4 (4) ✓ if child under age 17 on 6c who:

24 income (see instructions) . . . . . . . . (2). Dependent’s
Income. Add positive amounts shown on line 21. . (3) Dependent’s
Do notnumber
include any losses . .qualifying
. .for child
. .tax credit
. 24 • lived with you
social security relationship to you
Expenses:
25
(1) First name Last name
Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 •you
(see instructions)
( diddue
not live with
)
to divorce
5 Advertising . . . . . . . . . . . . . . 5 or separation
26
If moreTotal rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here.
than four (see instructions)
6 Auto and travel (see instructions) . . . . . . . 6
If Partssee
dependents, II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line Dependents on 6c
7 17,
instructionsCleaningFormand
orand 1040NR,maintenance . . . include
line 18. Otherwise, . . . this . amount
. . 7 total on line 41 on page 2 . . . .
in the 26 not entered above 99 00
8 here
check Commissions. . . . . . . . . . . . . .
▶ 8 Add numbers
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11344L Schedule E (Formon 1040) 2011
9 Insurance . . d . Total . .number . . of. exemptions
. . . claimed . . . .. . . 9 . . . . . . . . . . . . . . lines above ▶

10 Legal and other 7 professional

Wages, salaries, fees tips,
. etc.
. . Attach
. . Form(s)
. . W-2 10. . . . . . . . . . . . 7
Income
11
1040
Management 8a
fees Taxable
Department .of the .interest.
. . Attach
. Treasury—Internal . Schedule
. Revenue . . B. if required
. Service . (99) 11. . . . . . . . . . . . 8a
2011
Form

12 Mortgage interest U.S. Individual

b Tax-exempt
paid to banks, Income
etc.Do
interest. (seenotTax Return
include
instructions) on line 8a12. . . 8b OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
Attach Form(s)
13 year Jan. 1–Dec. 31,92011,
For the Other a Ordinary
or other taxdividends. Attach Schedule B if required . . ending
13 , 2011, . . . . . , .20 . . . 9aSee separate instructions.
here. Alsointerest. . . . . . . . . . . . . .
year beginning
W-2
14Your first
attach . . b . Qualified
name and initial
Repairs.
Forms . . . dividends . . . .. Last .. name
.. .. .. .. . .14. . . 9b Your social security number
W-2G
15 and Supplies . 10. . Taxable . . .refunds, . . credits,
. . or . offsets
. . of . state
. and15local income taxes . . . . . . 10
1099-R if return,
tax spouse’s
16If a joint
Taxes . . 11. first. nameAlimony
. and. .received . . .. .. Last
initial .. name
.. .. .. .. . .16. . . . . . . . . . . . 11Spouse’s social security number
was withheld.
17 Utilities . . 12. . Business . . . income . . or. (loss). . . Attach . . Schedule
. . C or
17C-EZ . . . . . . . . . . 12
18 address (number13
Home Depreciation Capital
and street).
expense gain
orIf you or (loss).
have
depletion a P.O. Attach
. box,. .seeSchedule
.instructions. 18 If not required, check here ▶ Apt. no. 13▲ Make sure the SSN(s) above
. . D. if required.
If you did not and on line 6c are correct.
19 a W-2,
get Other (list) ▶14 Other gains or (losses). Attach Form 4797 . .19. . . . . . . . . . . . 14
City, town or post office, 15 a Add
state, and code. If you have .a foreign15a
ZIPdistributions b instructions). 15b Presidential Election Campaign
20
see Total expenses.
instructions. IRA lines 5 through 19 . address, . . also. complete
. spaces below (see
20 Taxable amount . . .
Subtract line1620 a fromPensions lineand If result is16a
4. annuities b Taxable amount . . . 16bCheck here if you, or your spouse if filing
21 a (loss), see
Foreign country name 17
instructions to findRental out if realyouestate,
mustroyalties,
file Form partnerships,
6198Foreign. Sprovince/county
corporations,
21 trusts, etc. Attach Schedule
Foreign postal
jointly, want $3 to go to this fund. Checking
E code 17a box below will not change your tax or 99 00
Enclose, but do 18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 18refund. You Spouse
22 attach,
not Deductible
any rental real estate loss after limitation, if any,
Form 8582 191(seeUnemployment
Single compensation
. . . . .. .. .. . .22. ( . . . 4 . . Head . of . )household
(. . . (with 19 person).
. qualifying
Filingon
payment. Also,
Status instructions) ) ( (See instructions.) If )
please
23a use Total of all amounts 202a Social security
Married
reported onbenefits
filing jointly
line 3a(even 20aall
for if only had income) . . b. Taxable
oneproperties
rental . theamount
23a . . is. a child
qualifying person 20b
but not your dependent, enter this
Form 1040-V. 213 Other income. 21
Checkb Totalonly oneof all amounts Married
reported onList
filing type
3a and
separately.
line amount
for Enter
all spouse’s
royalty SSN above
properties . . . . child’s 23bname here. ▶
box. 22 Combine
and full thename
amounts here.in ▶ your total income
the far right column for lines 7 through 21.5This is Qualifying ▶ 22
c Total of all amounts reported on line 4 for all rental properties . . . . 23c widow(er) with dependent child

28 d Total of all amounts

Exemptions
Adjusted
e Total of all amounts
Gross
236a Educator
24 b Certain
expenses
Yourself.
reported
business
Spouse
reported
onIf line
someone
onexpenses
. can
4 for
.line. 12. offor
. .claim
all royalty
.reservists,
. you
properties
. .performing
all. properties . . ..artists,
. . do.23
. . as .a dependent,
. . . not
. check 23dbox 6a . . . . .
.. ..and.. .. .. . .23e. . . . . . .
Boxes checked
on 6a and 6b
No. of children
}
fee-basis government officials. Attach Form 2106 or 2106-EZ 24 (4) ✓ if child under age 17 on 6c who:
ADDITIONAL INFORMATION

Items That We Are Required to Report to the IRS > SECURITIES PURCHASED
Securities purchased through your brokerage account in 2011 are
> LIQUIDATION DISTRIBUTIONS
displayed in this section. This information will only be in this section
Generally, liquidation distributions are treated as amounts received if you do not receive the premium Tax and Year-End Statement. We do
from the sale or exchange of a capital asset and should be reported on not send this information to the IRS. We provide this information to
IRS Form 8949 (Sales and Other Dispositions of Capital Assets) and you because you will need it to calculate gain or loss upon disposition of
Form 1040, Schedule D, as either a short-term or long-term capital the securities. Please note the following:
gain or loss. Please review liquidation distributions with your tax
professional since the tax consequences may vary based on the nature – Net Cost: The net cost displayed includes commissions and fees.
of the distribution. If the security purchased is a debt instrument, the net cost does not
include accrued interest purchased. Accrued interest purchased is
> FOREIGN TAX PAID reported separately in this section of your Tax Information Statement.
Your Tax Information Statement may include foreign tax paid The cost of securities purchased during 2011 should be reported on
(withheld) from dividends and interest from foreign sources that are your tax return in the year the securities are sold on IRS Form 8949
credited to your account in 2011. This information allows you to (Sales and Other Dispositions of Capital Assets) and Form 1040,
calculate a foreign tax credit or deduction on your tax return. The rate Schedule D, Capital Gains and Losses.
of foreign tax paid varies from country to country and according to
– Securities: Various types of securities purchased, such as stocks and
applicable income tax treaties. A foreign tax credit can be claimed either
debt instruments, are included in this section.
on IRS Form 1116, Foreign Tax Credit, or, in some circumstances, by
reporting it directly on IRS Form 1040, line 47. A foreign tax credit – Trade Date: We report the securities you purchased on a trade-date
may be claimed only if the tax was legally owed and not eligible for basis.
refund. A deduction can be claimed on IRS Form 1040, Schedule A, – Accrued Interest Purchased: Your Tax Information Statement
Itemized Deductions, line 8. Foreign tax paid is reported in the includes details of accrued interest purchased for various categories
1099-INT and 1099-DIV sections of your Tax Information Statement. of notes and bonds purchased between interest payment dates. We
You should combine these amounts to determine your total foreign tax do not report accrued interest purchased to the IRS. Accrued interest
credit or deduction. purchased is generally a reduction of interest income in the year in
If you elect to take a foreign tax credit on your 2011 tax return, please which the related interest income is reported. The Tax Information
be aware that qualified dividends may have to be adjusted by 42.86% Statement includes accrued interest purchased with respect to all 2011
when determining foreign-source income on IRS Form 1116. See the note and bond purchases on a settlement-date basis. If you purchased
instructions to IRS forms 1040 and 1116 for more information about a note or bond with accrued interest in 2011, whose initial interest
foreign tax credits and deductions, and reporting qualified dividends payment was reported by us in 2011, you should adjust your 2011
when figuring your foreign tax credit. interest income by the accrued interest purchased, as reported on your
2011 brokerage confirmation or 2011 Tax Information Statement.
Items That We Are Not Required to Report to the IRS Taxable amounts of accrued interest purchased should be reflected on
IRS Form 1040, Schedule B, Interest and Ordinary Dividends, line
> PARTNERSHIP CASH DISTRIBUTIONS 1, as a reduction of interest income. Identify this reduction of interest
We report partnership cash distributions in this section of your Tax income as accrued interest. The nontaxable amounts should reduce the
Information Statement. We do not report this information to the IRS. appropriate nontaxable income categories.
Although you are not required to report partnership cash distributions
on your tax return, this information is useful because partnership cash – Investment Expenses, Advisory Fees and Shortfalls: Certain
distributions generally reduce the tax basis of your investment in a investment expenses and advisory fees charged to your account
partnership. A disposition of your interest in a partnership is generally may be summarized. This amount represents the total amount
reflected as proceeds from securities transactions in the 1099-B for certain expenses and fees charged in 2011. Investment expenses
section of your Tax Information Statement and is reported by us to (other than investment interest expense) are generally deductible
the IRS. Accounts that held partnership interests will receive their as miscellaneous itemized deductions (on IRS Form 1040), to the
tax information directly from the partnership on IRS Form 1065, extent they exceed 2% of adjusted gross income. To be deductible
Schedule K-1, Partner’s Share of Income, Credits, Deductions, etc. these expenses generally must be (i) ordinary and necessary
Contact the partnership directly if you do not receive this form. expenses paid or incurred to produce income or collect income or
to manage property held for producing income, (ii) the income
> EQUITY OPTIONS TRANSACTIONS from the activity must be taxable rather than tax-exempt income,
If you traded or held equity options during 2011 in your brokerage and (iii) the expenses must be directly related to the income or
account, we report certain activities (for instance, sales, purchases and income-producing property. Examples of expenses which may
expirations) related to those options in this section. This information qualify include management fees and investment counsel and
will only be in this section if you do not receive the premium Tax and advice fees.
Year-End Statement. We do not report this information to the IRS. Certain shortfalls will be reflected in this section. If the projected
The closing of an equity options transaction is typically reportable as payment announced by the issuer of a contingent debt security
a capital gain or loss on IRS Form 1040, Schedule D, Capital Gains is less than the amount projected by the issuer, the difference is
and Losses. The tax rules governing equity options are complex. We reflected as a shortfall.
suggest you carefully review these rules with your tax professional.

29
MUNICIPAL TAX-EXEMPT INTEREST AND MUNICIPAL ORIGINAL ISSUE DISCOUNT (OID)

A . TAX-EXEMPT INTEREST
Although we do not report municipal OID to the IRS, you should report municipal OID subject to AMT, as well as tax-exempt interest from specified
private activity bonds (IRS Form 1099-INT, Box 9) on IRS Form 6251, Alternative Minimum Tax—Individuals . You must also report total municipal
interest income on IRS Form 1040, Tax-Exempt Interest, line 8b . The sample below illustrates how this information is reported on your Tax Information
Statement . The totals can be easily identified on your statement, and the sample summary and sample tax forms illustrated on the next page explain how
you should report this municipal interest income and municipal OID on your tax returns . Box 10 reports the CUSIP number(s), if any of the tax-exempt
bond(s) for which tax-exempt interest is reported in Box 8 .
B . MUNICIPAL OID
This section displays OID earned on municipal bonds . The separate totals in this section allow you to determine how much of your municipal OID
is subject to the AMT . We report amounts based on the bond’s original issue price . Adjustments to the indicated amounts will have to be calculated based
on your actual purchase price and date . The recalculated amount will increase the tax basis of your bond, resulting in a smaller gain or larger loss upon the
ultimate disposition of the bond .

A OMB No. 1545-0112

This is important tax information and is being furnished to the IRS. If you are required to file 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.

Tax-Exempt Bond
CUSIP No. W

123456AB1
SAMPLE STATEMENT

123456XYO

2 1

9876543TR2

1234568AB1

3 4

(see page 31)

30
MUNICIPAL TAX-EXEMPT INTEREST AND MUNICIPAL ORIGINAL ISSUE DISCOUNT (OID)

Sample Summary of Tax-Exempt Interest Income and Municipal OID

 he summary below illustrates how the tax-exempt interest income and municipal OID listed on your Tax Information Statement should be
T
reported on your tax returns.
Tax-Exempt
Interest Income Municipal OID Totals
Specified Private Activity Bond Interest $595.00* 1 + $21.98 3 = $616.98
Tax-Exempt Interest $1,475.00 2 + $145.64 4 = $1,620.64
Total Tax-Exempt Interest Income and OID $2,237.62
 he total amount of the tax-exempt interest income and the municipal OID subject to AMT should be reported
T
on IRS Form 6251, Alternative Minimum Tax—Individuals, line 12 (for instance, the amount of $616.98 in the
calculation above).
 he total amount of municipal interest income and municipal OID should be reported on IRS Form 1040,
T
U.S. Individual Income Tax Return, line 8b (for instance, the amount of $1,620.64 in the calculation above).
*(Form 1099-INT, Box 9)

Form 6251 Alternative Minimum Tax—Individuals

▶ See separate instructions.
OMB No. 1545-0074

2011
Department of the Treasury Attachment
Internal Revenue Service (99) ▶ Attach to Form 1040 or Form 1040NR. Sequence No. 32
Name(s) shown on Form 1040 or Form 1040NR Your social security number

Part I Alternative Minimum Taxable Income (See instructions for how to complete each line.)
SAMPLE TAX FORM

1 If filing Schedule A (Form 1040), enter the amount from Form 1040, line 41, and go to line 2. Otherwise, enter the
amount from Form 1040, line 38, and go to line 6. (If less than zero, enter as a negative amount.) . . . . . 1

1040
2 Medical and dental. Enter the smaller of Schedule A (Form 1040), line 4, or 2.5% (.025) of Form 1040, line 38. If

2011
Department of the Treasury—Internal Revenue Service (99)
Form

zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

U.S. Individual Income Tax Return
3 Taxes from Schedule A (Form 1040), lines 5, 6, and 8 . . . . . . . . . . . . . . . . . .
OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
3
For the year Jan. 1–Dec. 31, 2011, or other tax year beginning , 2011, ending , 20 See separate instructions.
4 Enter the home mortgage interest adjustment, if any, from line 6 of the worksheet on page 2 of the instructions 4
Your first name and initial Last name Your social security number
5 Miscellaneous deductions from Schedule A (Form 1040), line 27 . . . . . . . . . . . . . . . 5
6 If filing Schedule L (Form 1040A or 1040), enter as a negative amount the sum of lines 6 and 17 from that schedule 6 ( )
If a joint return, spouse’s first name and initial Last name Spouse’s social security number
7 Tax refund from Form 1040, line 10 or line 21 . . . . . . . . . . . . . . . . . . . . 7 ( )
8 Investment interest expense (difference between regular tax and AMT) . . . . . . . . . . . . . 8
Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
9 Depletion (difference between regular tax and AMT) . . . . . . . . . . . . . . . . . . ▲ Make 9 sure the SSN(s) above
and on line 6c are correct.
10 Net operating loss deduction from Form 1040, line 21. Enter as a positive amount . . . . . . . . . 10
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campaign
11 Alternative tax net operating loss deduction . . . . . . . . . . . . . . . . . . . . . 11 ( )
Check here if you, or your spouse if filing
12 Interest from specified private activity bonds exempt from the regular tax . . . . . . . . . . . . jointly,12
Foreign country name Foreign province/county Foreign postal code
want $3 to go to this fund. Checking 616 98
13 Qualified small business stock (7% of gain excluded under section 1202) . . . . . . . . . . . . a box 13 below will not change your tax or
refund. You Spouse
14 Exercise of incentive stock options (excess of AMT income over regular tax income) . . . . . . . . . 14
1 Singlefrom Schedule K-1 (Form 1041), box 12, code A) . 4 . . Head
. of
. household
. . . (with . qualifying person). (See instructions.) If
Filing Status
15 Estates and trusts (amount . . 15
16 Electing large 2partnerships Married filing jointly
(amount (even if only
from Schedule K-1one had1065-B),
(Form income) box 6) . . . the. qualifying . . person
. . is. a child. . but not
16your dependent, enter this
Check 17 only one
Disposition of 3property Married filing between
(difference separately. AMT Enter
andspouse’s
regular tax SSN above
gain
child’s name here. ▶
or loss) . . . . . . . . . . . 17
box.
1040 Department of and full name here.Revenue
the Treasury—Internal ▶ Service (99)
2011
5 Qualifying widow(er) with dependent child
Form

18 Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) . . . . . . 18
Exemptions
19 Passive activitiesU.S.
For the year Jan. 1–Dec. 31, 2011,
b
Individual
6a (difference
Yourself.
or other
IfIncome
between someone
tax year beginning
Spouse .
AMT and
. . .
Tax
can
. .
Return
claim
regular
.
youincome
tax
. . .
20 Loss limitations (difference between AMT and regular tax income or loss) . . . . . . . . . . . .
or loss) do
as a dependent,
. , 2011,
. .
. not
ending
. .
OMB No.box
. check
. .
1545-0074 IRS Use Only—Do not
. . . .6a .. .. .. .. ..
. , 20
. . . . . .
Boxes
}
checked
write or
19on 6a and 6b
staple in this space.

See separate instructions.

20No. of children
Your first name and initial c Dependents: Last name (2) Dependent’s (4) ✓ if child under age 17 Your on social security number
6c who:
21 Circulation costs (difference between regular tax and AMT) . . . . (3) . Dependent’s
. . . . qualifying . . .for child. .tax credit
. . 21• lived with you
social security number relationship to you
SAMPLE TAX FORM

(1) First name Last name

22 Long-term contracts (difference between AMT and regular tax income) . . . . . . . . . . . . . (see instructions) 22• did not live with
If a joint return, spouse’s first name and initial Last name you social
Spouse’s due tosecurity
divorcenumber
23 Mining costs (difference between regular tax and AMT) . . . . . . . . . . . . . . . . . 23or separation
If more than four (see instructions)
24 Research
dependents, see and experimental costs (difference between regular tax and AMT) . . . . . . . . Apt.. no.. . 24
Home address (number and street). If you have a P.O. box, see instructions. Dependents on 6c
25 Income
instructions and from certain installment sales before January 1, 1987. . . . . . . . . . . . . . . . ▲ 25 not (entered
Make sure theabove
SSN(s) above )
and on line 6c are correct.
check 26here ▶
Intangible drilling costs preference . . . . . . . . . . . . . . . . . . . . . . . 26Add numbers on
City, town or post office, state,
d andTotal
ZIP code. If you of
number have a foreign address,
exemptions also complete
claimed . . spaces
. .. below (see instructions). Presidential Election
▶ Campaign
27 Other adjustments, including income-based related adjustments .. .. .. .. .. .. .. .. .. .. .. .. .. 27lines above
7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . Check here if you, or your spouse if filing
7
Income 28 Alternative minimum taxable income. Combine lines 1 through 27. (If married filing separately and line 28 is
Foreign country name Foreign province/county Foreign postal code
jointly, want $3 to go to this fund. Checking
more than $219,900, 8a Taxable see page interest.
8 of the Attach Schedule B
instructions.) . . .. .. .. .. .. .. .. .. .. .. .. .. . .8a
. if .required a box 28
below will not change your tax or
Part II Alternative Minimuminterest.
b Tax-exempt Tax (AMT) Do not include on line 8a . . . 8b 1,620 64 refund. You Spouse
Attach Form(s)
29 Exemption. (If 9 a were
1you Ordinary
Single
under dividends.
age 24 atAttach
the end Schedule
of 2011, Bsee
if required
page 8 of the .4 . .Head
. .instructions.) . of. household
. . .(with 9a person). (See instructions.) If
. qualifying
Filing
W-2 here. Status
Also
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IF your filing status
attach Forms is . . . dividends
Married filing jointly (even . . ifAND . only
. line
. 28
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not. over
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. but not your dependent, enter this

}
Check
W-2G and only one or head
Single 10 3of household
Taxable
Married refunds,
filing credits,
. . .orEnter
. .separately. offsets of state
spouse’s
$112,500 and
. SSN local
. . income
. above . . taxeschild’s . .name
$47,450 . here.
. .▶ . 10
box.
1099-R if tax and fullreceived
name here. . . . .. .. .. .. .. ..5 . .Qualifying . . .widow(er) . . ..with
Married filing11 jointly Alimony
or qualifying widow(er) . ▶ . .. . 150,000 72,450 . dependent
11 child

}
was withheld. Boxes checked
Married filing 12 6a Business
separately Yourself.
. . income
. or
If. someone
. (loss).
. . Attach
can claimSchedule
75,000 you as. aC.dependent,
or .C-EZ . .. do .. not. check
. 36,225
. box. 6a . . . . . 12 . 29
Exemptions on 6a and 6b
13btheCapital
If line 28 is over Spouse
amount gain
shownor (loss). . Attach
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. filing
. . status,D
. if .required.
see . If. 8not
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. . check
. instructions.
the . . here . .▶ . . . 13 . No. of children
If you did not Dependents: (4) ✓ if child under age 17 on 6c who:
get a30W-2,Subtract line14 29c from Other
linegains
28. If ormore(losses).
than Attach
zero, go Form 4797
to(2)line 31.. If zero
Dependent’s . . or. less, . Dependent’s
(3) . . -0-
enter . here. . and . on. lines
qualifying for
. .33 and14
child tax credit • lived with you
social security number relationship to you
35 and skip the
see instructions. 15arestIRA
(1) First name
of Part II . . .. . .15a. . . . . . . . . b
distributions Last name . Taxable
. . .amount . . .. .. .. . 15b
(see instructions) . 30• did not live with
you due to divorce
31 • If you are filing 16a Form Pensions
2555 or and annuitiessee 16a
2555-EZ, page 9 of the instructions for the bamount Taxable toamount
enter. . . . 16b or separation
If more than four (see instructions)
• If you reported17 capital Rental
gainreal estate, royalties,
distributions directly onpartnerships,
Form 1040, line S corporations,
13; you reported trusts, etc.dividends
qualified Attach Schedule E 17
dependents,
Enclose, but do see Dependents on 6c 31
instructions on Form
and 18
1040, line Farm
9b; or income
you had or
a (loss).
gain on Attach
both linesSchedule
15 and 16 F of. .
Schedule. .D .
(Form . .
1040) .
(as . .
refigured . . . .
. . 18 31not entered above
not attach, any
COLLATERALIZED DEBT OBLIGATIONS (CDOs), COLLATERALIZED MORTGAGE OBLIGATIONS (CMOs)
AND REAL ESTATE MORTGAGE INVESTMENT CONDUITS (REMICs)

If you owned a CDO, CMO or REMIC in your brokerage account during 2011, we are required to report additional information to you. This
information is reported on the Additional Written Statement included with your Tax Information Statement. An explanation of this Additional
Written Statement is provided below. We are required to report this information to you by March 15, 2012. As a result, your Tax Information
Statement may not contain this information; if it is not included, a message similar to the one listed in the Frequently Asked Questions section on
page 33 will appear on your statement.
Depending on the type of CDO held in your account, the income is reported on IRS Form 1099-INT or IRS Form 1099-OID. You should report
this information on IRS Form 1040, Schedule B, Interest and Ordinary Dividends, line 1. Refer to pages 34 and 35 for illustrations of how
reportable amounts of interest income and OID are derived and how they should be reported on your tax return.
SAMPLE STATEMENT

A B C D E F G H I J

o
A. LOT NUMBER E. DAILY ACCRUED INTEREST INCOME
If you accumulated your position by purchasing the same security on If your CDO is a REMIC, you are required to report the interest
different dates, each individual purchase creates a separate lot that is income with respect to the REMIC as you earn the income, on an
identified on the Additional Written Statement. We use the FIFO accrual basis. Income computed on an accrual basis may differ from the
method to calculate the adjusted issue price and the OID. Information cash payments credited to your account. We report the daily portion of
is not reported to the IRS on a separate lot basis. Amounts are reported accrued interest income per $1,000 of original principal.
to the IRS on a CUSIP (or security) basis. However, information is
reported to you on a separate lot basis because you may find the separate
F. AGGREGATE AMOUNT OF OID
This amount represents the OID that was earned during the period
lot information useful when preparing your tax return.
the CDO was held in your account. The calculation assumes that you
B. ACCRUAL PERIOD BEGINS purchased the CDO at the CDO’s adjusted issue price as of the date
The income earned on a CDO is calculated separately for each accrual of the purchase. If your purchase price was greater than the CDO’s
period (typically accrual periods are approximately one month). We are adjusted issue price, your purchase price includes an acquisition
required to report income to you for each accrual period. Accordingly, premium. The security total of the aggregate amount of OID is reported
the beginning of each accrual period is indicated. Amounts are totaled to the IRS. This amount can be calculated by multiplying the quantity,
and then reported to the IRS on an annual basis. days held and daily OID, and then dividing the result by $1,000. Refer
to the OID section on page 26 for additional information.
C. BEGINNING ADJUSTED ISSUE PRICE
The adjusted issue price of a CDO is its initial issue price, plus all G. AGGREGATE AMOUNT OF ACCRUED INTEREST INCOME
previously accrued OID. If your CDO was issued without OID, the As discussed above, if your CDO is a REMIC, you are required to
adjusted issue price column will be blank. If your CDO was issued report interest income on an accrual basis. The security total of the
with OID, you may need this information. Refer to the OID section aggregate amount of accrued interest income reflects the interest
on page 26 for additional information. income you earned and is reported to the IRS. This amount can be
calculated by multiplying the quantity, days held and daily accrued
D. DAILY OID interest income, and then dividing the result by $1,000.
This amount is the daily accrual rate of the OID for your CDO. You
may be able to reduce the amount of the OID you report by a portion
of your acquisition premium. Refer to the OID section on page 26 for
additional information.

32
COLLATERALIZED DEBT OBLIGATIONS (CDOs), COLLATERALIZED MORTGAGE OBLIGATIONS (CMOs)
AND REAL ESTATE MORTGAGE INVESTMENT CONDUITS (REMICs)

H. ACTUAL INTEREST PAID (CASH) J. ENDING MARKET DISCOUNT FRACTION

This amount represents the portion of the cash credited to your This fraction represents the rate at which the market discount accrues.
account that was designated as interest with respect to your CDO. Market discount exists if your purchase price was less than the
For certain CDOs, a portion of the cash payment is designated as a adjusted issue price of the CDO (if your CDO was issued with an
return of principal. Cash payments that represent a return of principal OID) as of the date of the purchase. If the CDO was issued without
are reported in the Return of Principal Distributions section of your OID, market discount also exists if the purchase price was less than
statement. If your CDO is a REMIC, the amount in this column is the redemption value as of the date of the purchase. In either case, it
shown merely for informational purposes. may be necessary for you to keep track of the amount of the market
discount that amortizes during the period the CDO was held in your
I. INVESTMENT EXPENSES account. It is not required that you recognize the amortization of the
This represents your share of investment expenses of a single-class
market discount currently (unless you have so elected). However, you
REMIC. If you file IRS Form 1040, you may deduct these expenses
may need to know how much market discount amortized during your
(subject to the 2% limit) on IRS Form 1040, Schedule A, line 23.
holding period so that the gain, if any, on the sale or other disposition
of your CDO is properly characterized as a capital gain or as ordinary
income. This calculation is complex and we recommend that you
consult a tax professional for assistance.

Frequently Asked Questions: REMICs

INFORMATION MAY NOT BE AVAILABLE

Q. Why is tax information from my CDO or REMIC missing from my Tax Information Statement?
A. Issuers of CDOs and REMICs are not required to provide you with the necessary tax information until March 15, 2012. Your Tax Information Statement
may contain the following message if we have not received the information by the time your statement was mailed:
**** READ THIS MESSAGE CAREFULLY BEFORE FILING YOUR TAX RETURN ****
  UR RECORDS INDICATE THAT YOU HELD COLLATERALIZED DEBT OBLIGATIONS (CDO, CMO, REMIC OR FASIT) DURING 2011. THIS
O
STATEMENT DOES NOT INCLUDE INFORMATION RELATED TO THOSE INVESTMENTS. UPON RECEIPT OF INFORMATION FROM THE ISSUER,
WE WILL PROMPTLY FORWARD A REVISED STATEMENT TO YOU. ISSUERS OF COLLATERALIZED DEBT OBLIGATIONS, WIDELY HELD FIXED
INVESTMENT TRUSTS AND WIDELY HELD MORTGAGE TRUSTS ARE NOT REQUIRED TO PROVIDE US WITH TAX INFORMATION UNTIL AFTER
THIS STATEMENT IS MAILED. ACCORDINGLY, YOU SHOULD NOT FILE YOUR TAX RETURNS UNTIL YOU RECEIVE A REVISED STATEMENT FROM
US WITH THE APPLICABLE TAX INFORMATION. THE FOLLOWING IS A LIST OF COLLATERALIZED DEBT OBLIGATIONS, WIDELY HELD FIXED
INVESTMENT TRUSTS AND WIDELY HELD MORTGAGE TRUSTS HELD DURING 2011.
If your statement contains this message, you should delay filing your tax return until you receive a revised Tax Information Statement from us with
the complete information that we receive from the issuers.

ADDITIONAL WRITTEN STATEMENT

Q. Why does certain information appear to be missing from my Additional Written Statement?
A. Your Additional Written Statement provides customized information for each CDO investment you held. Not all description headings on the Additional
Written Statement may be pertinent to your investments. For instance, if your CDO was issued without an OID, there will be no information under the
OID description headings on your Additional Written Statement.

CASH RECEIVED DIFFERS FROM INTEREST REPORTED

Q. Why is the first interest accrual on my Additional Written Statement different from the interest received in cash for that period? Also, why is the last
payment different?
A. Interest income earned on a REMIC may differ from the cash received. REMIC interest income is calculated and reported to you on an accrual basis.
Under an accrual basis, income is reported when it is earned and not when cash is paid. Accordingly, there may be differences between what is reported
as interest income and the amount of cash you actually received.

33
COLLATERALIZED DEBT OBLIGATIONS (CDOs), COLLATERALIZED MORTGAGE OBLIGATIONS (CMOs)
AND REAL ESTATE MORTGAGE INVESTMENT CONDUITS (REMICs)

> ADDITIONAL WRITTEN STATEMENT

We are required to report additional information to you regarding CDOs, However, we suggest that you carefully review your CDO information
including REMICs. We provide this on an Additional Written Statement. with a tax professional. The following example illustrates how information
You need this additional information to complete your tax returns. The from the Interest Income and Original Issue Discount sections of your Tax
Additional Written Statement also provides calculations for the interest Information Statement is reflected on your Additional Written Statement.
income and OID reported to you and to the IRS. The Additional Written Please refer to the samples below and on the following page
Statement, however, is provided only to you, not to the IRS. for illustrations of how reportable amounts of interest income and OID
The tax rules relating to CDOs are complex. We have attempted to are derived and how they should be reported on your tax return.
present and explain the information so that it is useful to you.
SAMPLE STATEMENT

01234AB0

1 2

98765PR8

(see page 35)

34
COLLATERALIZED DEBT OBLIGATIONS (CDOs), COLLATERALIZED MORTGAGE OBLIGATIONS (CMOs)
AND REAL ESTATE MORTGAGE INVESTMENT CONDUITS (REMICs)

If your CDO was issued with OID, we report the income to the IRS on IRS Form 1099-OID. IRS Form 1099-OID has two components,
OID 1 and other periodic interest 2 , as illustrated below:
SAMPLE STATEMENT

OID on U.S.
Accrual Daily OID Original Issue Other Periodic Federal Income Treasury Investment
Lot Lot Begin/ Days Rate Discount Interest Tax Withheld Obligations Expenses
No. Quantity Entry Date Held Per $1,000 (Box 1) (Box 2) (Box 4) (Box 6) (Box 7)
OID on U.S.
Accrual Daily OID Original 1Issue Other Periodic Federal Income Treasury Investment
23456LM2 Lot Lot Begin/ Days Rate Discount Interest Tax Withheld Obligations Expenses
No. Quantity Entry Date Held Per $1,000 (Box 1) (Box 2) (Box 4) (Box 6) (Box 7)
2
12345AB2
23456LM2

12345AB2
If your CDO was issued without OID, we report the interest income 3 to the IRS on IRS Form 1099-INT and to you in the Interest Income section
of your Tax Information Statement as illustrated below:
Federal Income
SAMPLE STATEMENT

Tax Withheld
(Box 4)
XYZ HMN INDS INC SUB
Federal Income
Tax Withheld
(Box 4)
XYZ HMN INDS INC SUB
3

The income that we report to you in both the 1099-OID and Interest Income sections of your Tax Information Statement (as illustrated above) should
be reported on your tax return on IRS Form 1040, Schedule B, line 1, as indicated below:

SCHEDULE B OMB No. 1545-0074

Interest and Ordinary Dividends
(Form 1040A or 1040)

Department of the Treasury Attach to Form 1040A or 1040. See instructions on back.
2011
Attachment
Sequence No. 08
SAMPLE TAX FORM

Internal Revenue Service (99)

Name(s) shown on return Your social security number

1 List name of payer. If any interest is from a seller-financed mortgage and the Amount
Part I buyer used the property as a personal residence, see instructions on back and list
Interest this interest first. Also, show that buyer’s social security number and address
(See instructions
on back and the Pershing LLC, 13-2741729 750 00
instructions for
Form 1040A, or
Form 1040,
Pershing LLC, 13-2741729 20 30
line 8a.)
Pershing LLC, 13-2741729 1 675 00
Note. If you
received a Form
1099-INT, Form
1099-OID, or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter 2 Add the amounts on line 1 . . . . . . . . . . . . . . . . . . 2
the total interest 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989.
shown on that
form. Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . 3
4 Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form
1040, line 8a . . . . . . . . . . . . . . . . . . . . . . 4
Note. If line 4 is over $1,500, you must complete Part III. Amount
5 List name of payer
Part II
Ordinary
35
Dividends
ADDITIONAL WRITTEN STATEMENT—WIDELY HELD FIXED INVESTMENT TRUSTS (WHFITs) AND WIDELY
HELD MORTGAGE TRUSTS (WHMTs)

Widely Held Fixed Investment Trusts (WHFITs) and Widely Held Mortgage Trusts (WHMTs)
We are required to report certain specific information regarding items of gross income and expense to trust interest holders for the calendar year on IRS
Form 1099. UITs, royalty trusts, mortgage-backed securities and commodity trusts are all considered WHFITs. A WHFIT whose assets are mortgages,
amounts received on mortgages and reasonably required reserve funds as measured by value is considered to be a WHMT. A WHFIT is also considered a
WHMT if all of its assets include trust interests in one or more WHMTs and REMICs.
In addition to the information reported on IRS Form 1099, we are also required to furnish trust interest holders with an Additional Written Statement with
certain detailed information by March 15, 2012. An explanation of items included on the Additional Written Statement is provided below. Also, please refer
to the sample statement provided below for specific instructions on how to report each item reflected in the Additional Written Statement.
Items of gross income (including interest) attributable to the WHFIT for the calendar year (including all amounts of income attributable to selling,
purchasing or redeeming your interest in the WHFIT) are provided. We have also provided other items of income that may be relevant for preparing your
income tax return, including trust sales proceeds, non-pro rata partial principal payments and redemption asset proceeds. Again, these amounts should be
reflected on IRS Form 8949 (Sales and Other Dispositions of Capital Assets) and Form 1040, Schedule D, of your personal income tax return.
Period Principal Paid Market Remaining Adjusted Original Cost-
SAMPLE

or Proceeds Cost/Purchase Gross Investment Discount Income Income Basis Cost Basis
of Sale Price Interest Expenses Fraction Adjustment Adjustment Percentage Basis Factor

A B C D E F G H I J
A. PERIOD PRINCIPAL PAID OR PROCEEDS OF SALE 1987, you can elect to amortize the bond premium over the life of the
This represents the principal distributed to record date holders or bond. See IRS Publication 550 for more information.
the proceeds of a sale, net of accrued interest. This amount includes F. REMAINING INCOME ADJUSTMENT
redemption and sales proceeds and redemption and sales asset proceeds. This represents the portion of your premium or discount that remains
It also includes principal payments that completely retire a debt unamortized as of the start of the period. A positive amount represents
instrument (other than a final scheduled principal payment) and pro additional income in the form of a market discount. A negative amount
rata partial principal prepayments. The amount should be reported indicates a bond premium offset to interest income.
on IRS Form 8949 and Form 1040, Schedule D.
G. INCOME ADJUSTMENT
B. COST/PURCHASE PRICE You must increase or decrease your taxable income by the amount of this
This represents the cost of a purchase (the amount paid for the units premium or discount on purchases for your account.
including broker’s commissions or the fair market value of such units on
the date they were distributed), net of accrued interest. H. ADJUSTED BASIS PERCENTAGE
This represents the ratio of the principal distribution over the principal
C. GROSS INTEREST balance at the start of the year. Please use this ratio to determine the
This represents the amount of interest distributed to you and received as portion of your adjusted basis that represents return of principal. It should
accrued interest on sales or paid as accrued interest on purchases. be used to compute gain or loss on IRS Form 8949 and Form 1040,
D. INVESTMENT EXPENSES Schedule D.
This amount represents your share of investment expenses paid by the trust. I. ORIGINAL COST BASIS
You may be able to deduct these expenses on IRS Form 1040, Schedule A, This represents the amount that you originally paid for the units,
line 14, but the deduction is limited to net investment income. including broker’s commissions or the fair market value of such units, on
E. MARKET DISCOUNT FRACTION the date they were distributed. This amount should be used to compute
This is the ratio used to compute your market discount income or gain or loss on IRS Form 8949 and Form 1040, Schedule D.
premium amortization for the year. Amortization of bond premiums J. COST-BASIS FACTOR
is deductible on Form 1040, Schedule A, line 28. If you are claiming Use the Cost-Basis Factor provided to allocate a portion of your cost
a deduction for amortization of premiums for bonds acquired after basis in the WHFIT (in other words, what you paid for the WHFIT,
October 22, 1986, but before January 1, 1988, the deduction is treated less any reinvested dividend or capital gain distributions) to each sale of
as interest expense and is subject to the investment interest limitations. disposition in order to determine any attributable and reportable sales
Use IRS Form 4952, Investment Interest Expense Deduction, to proceeds and realized gains or losses on IRS Form 8949 and Schedule D
compute the allowable deduction. For taxable bonds acquired after of IRS Form 1040.
> WHMT TRANSITION PAYMENTS
Certain WHFITs are transitioning from reporting based on payment dates to reporting based on record dates for certain WHMTs. The amount
reported may represent your share of transition payments for a WHMT. A “transition payment” is any payment (gross income, less applicable
expenses) that has (1) a payment date in the “transition year” or first year that the trustee or middleman transitions to reporting under the WHMT
safe harbor rules; and (2) a record date in a year prior to the transition year. Thus, transactions with a record date, for example, of December 2011,
which were actually paid in January 2012, will be reported on your IRS 2011 Form 1099. You must include transition payments in your taxable
income during the year of transition as a section 481(a) adjustment to prevent omission of income caused by the reporting transition.
We do not provide tax advice. Please consult with your tax professional regarding the proper reporting of items of income and expense for WHFITs
and WHMTs.
36
SUPPLEMENTAL INFORMATION—ROYALTY TRUSTS AND HOLDING COMPANY DEPOSITORY
RECEIPTS (HOLDRS®) TRUSTS

Royalty Trusts and HOLDRS Trusts WHFIT Classification

If you owned a royalty or HOLDRS trust in your brokerage account Royalty trusts, UITs and HOLDRS trusts are all considered NMWHFITs
during 2011, we are required to report additional information to you. for federal income tax purposes. These grantor trusts are subject to the
This information is reported on the Supplemental Information Statement reporting requirements for WHFITs. The trustee of your royalty trust will
included with your Tax Information Statement. An explanation of items provide tax information in accordance with the applicable U.S. Treasury
reflected in this Supplemental Information Statement is provided below. regulations governing the information reporting requirements of the trust
We are required to report this information to you by March 15, 2012. as a WHFIT and a NMWHFIT. Royalty trust tax information booklets
The income from these trusts is generally reported by us on the will be available via links at www.mytaxhandbook.com. The links will
appropriate IRS Form 1099. You should report this information on your be activated when the information is made available by the trusts. In the
IRS Form 1040, Schedule E. Refer to the sample statement below for booklets, the trusts provide information required by you to compute and
specific instructions on how to report these items. report income, gains, losses, deductions and credits attributable to your
units of the trust.
For NMWHFITs generating interest and dividends only, we
have reported required amounts using the “simplified reporting”
procedure authorized by the IRS. This information should be used
to compute your redemption proceeds and the amortizable bond
premium. Additionally, for deminimus, qualified or final calendar year
NMWHFITs, we have reported trust asset proceeds, but have not, in
accordance with IRS regulations, provided other details, including the
bond premium or market discount for these NMWHFITs.
Please consult with your tax professional regarding the proper tax
treatment and reporting of proceeds from royalty, HOLDRS, UITs
and NMWHFITs.

Expenses Expenses Not Investment Section

Severance Administrative Subject to 2% Subject to 2% Interest 1231 Additions
SAMPLE

Tax Fees Expense AGI Limitation AGI Limitation Expense Gain to Basis

A B C D E F G H

A. SEVERANCE TAX F. INVESTMENT INTEREST EXPENSES

This amount represents your pro rata share of severance taxes paid by the This amount represents your share of investment interest expense paid
trust, which are deductible on IRS Form 1040, Schedule E, line 16. by the trust. If you file IRS Form 1040, you may be able to deduct these
expenses on IRS Form 1040, Schedule A, line 14, but the deduction is
B. FEES limited to net investment income. This limitation is calculated on IRS
Your pro rata share of professional fees paid by the trust is deductible on Form 4952, Investment Interest Expense Deduction. If your investment
IRS Form 1040, Schedule E, line 10. interest expense is deductible, this is reported as an itemized deduction on
IRS Form 1040, Schedule A, line 14.
C. ADMINISTRATIVE EXPENSE
Your pro rata share of trust administration expenses paid and accrued G. SECTION 1231 GAIN
during the period on a per unit basis should be reported on your IRS Section 1231 transactions are sales and exchanges of property held
Form 1040, Schedule E, line 19. longer than one year and either used in a trade or business or held for
the production of rents or royalties. This amount should be reflected
D. EXPENSES SUBJECT TO 2% ADJUSTED GROSS INCOME
on IRS Form 4797 (Sales of Business Property) and then Schedule D
(AGI) LIMITATION as an attachment to IRS Form 1040.
This amount represents your share of certain other expenses incurred by
the trust and subject to the 2% AGI limitation that can be deducted on H. ADDITIONS TO BASIS
IRS Form 1040, Schedule A, line 23. Your original cost basis (the amount that you paid for the units,
including broker’s commissions or the fair market value of the units
E. EXPENSES NOT SUBJECT TO 2% AGI LIMITATION on the date they were distributed) should be increased by amounts
This amount represents your share of certain other expenses that are not reflected in this section to compute your adjusted basis. Your adjusted
limited to 2% of your AGI and should be deducted on IRS Form 1040, basis should then be used to compute any gain or loss reportable on
Schedule A. IRS Form 1040, Schedule D.

37
RETIREMENT ACCOUNT DISTRIBUTIONS—IRS FORM 1099-R

Information Reported on IRS Form 1099-R

If you took a reportable distribution from your IRA (Traditional IRA, Roth IRA, Simplified Employee Pension [SEP] IRA or Savings Incentive Match Plan for
Employees [SIMPLE] IRA), qualified retirement plan (401(k), profit-sharing plan or money purchase pension plan), or 403(b)(7) custodial account, you will
receive IRS Form 1099-R. The payer for transactions reported on IRS Form 1099-R is Pershing LLC (Taxpayer Identification Number 13-3718556).
The following example is provided for illustrative purposes only. For more information, please refer to IRS Form 1040 instructions and speak with your tax
professional regarding your specific circumstances.

A. GROSS DISTRIBUTIONS C. TAXABLE AMOUNT NOT DETERMINED

Box 1 displays the gross distribution taken from your retirement account. The “Taxable Amount Not Determined” box is either blank or populated
Note that you may receive more than one IRS Form 1099-R. The with an “X.” In most cases, particularly for distributions from IRAs, the
amount entered in Box 15a should be a total of all gross distributions IRS instructions call for the payer to populate the box with an “X.” You
from your IRAs. The amount entered in Box 16a should be a total of should consult with a tax professional to determine the actual taxable
all gross distributions from your qualified retirement plans or 403(b)(7) amount of your distribution(s).
custodial accounts.
D. DISTRIBUTION CODE(S)
B. TAXABLE AMOUNT You may owe additional tax on the amount distributed to you. An
Box 2a displays the taxable amount of distributions taken from your example of this would be if you took a distribution from your IRA and
1040 Department of the Treasury—Internal Revenue Service (99)
2011
Form

retirement account. In the Instructions U.S. Individual Income Tax Return you are under OMB
to Form 1099-R, the IRS generally age 59 1/2 and no exceptions apply (first-time home
No. 1545-0074 IRS Use Only—Do not write or staple in this space.
stipulates that theFortaxable amount
the year Jan. reported
1–Dec. 31, in Box
2011, or other 2abeginning
tax year be the same amount purchase or distribution, is
, 2011, ending 20 part of a seriesSee
of separate
substantially equal periodic
instructions.
reported in Box 1Your forfirst
Traditional, SEP and SIMPLE IRAs. The
name and initial Lastamount
name payments). In certain cases where no exception applies,
Your social securityyou may owe
number

entered in Box 15b, 16b or both of your IRS FORM 1040 should be a an additional 10% in taxes. See IRS Form 5329 for the calculation of
If a joint return, spouse’s first name and initial
total of the taxable amount of your distributions, as appropriate. Last name
additional tax on early distributions. Spouse’s social security number
Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Make sure the SSN(s) above
▲
and on line 6c are correct.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign country name Foreign province/county Foreign postal code
a box below will not change your tax or
refund. You Spouse
A
1 Single 4 Head of household (with qualifying person). (See instructions.) If
Filing Status
B one had income)
1099-R FORM

2 Married filing jointly (even if only the qualifying person is a child but not your dependent, enter this
Check only one 3 Married filing separately. Enter spouse’s SSN above
C child’s name here. ▶
box. and full name here. ▶ 5 Qualifying widow(er) with dependent child

Exemptions
Form 1040 (2011)
6a
b
Yourself. If someone can claim you as a dependent, do not check box 6a . . . . .
Spouse . . . . . . . . . . . . . . . . . . . . . . . .
} Boxes checked
on 6a and 6b
No. of children
Page 2
38 Amount from line 37 (adjusted gross income)
c Dependents: . . . . (3).Dependent’s
(2) Dependent’s . . . . (4). ✓ if. child
. under . 17 38
. age on 6c who:
Tax and
{ }
social security to youTotalqualifying
for child tax credit • lived with you
39a(1) First
Check name You were born before D
Last name January 2, number
1947, relationship
Blind. boxes(see instructions) • did not live with
Credits you due to divorce
if: Spouse was born before January 2, 1947, Blind. checked ▶ 39a or separation
IfStandard
more than four b If your spouse itemizes on a separate return or you were a dual-status alien, check here ▶ 39b (see instructions)
dependents,
Deduction see
for— 40 Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . 40 Dependents on 6c
instructions and not entered above
• People
check herewho ▶ 41 Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . 41
check any Add numbers on
box on line 42 Exemptions.
d Total number Multiply $3,700 by the
of exemptions number. on. line. 6d. . . . . . . . . . . . . . . . . . . . . . . . . . 42 lines above ▶
claimed
39a or 39b or 43
7TaxableWages,income.salaries, Subtract
tips, etc.lineAttach
42 from line 41.
Form(s) W-2If line .42 is . more
. . than . line
. .41,.enter . -0- . .. .. 743
Income
who can be
44 Tax (see from: aB if required
claimed as a 8a instructions).
Taxable interest.Check Attach if any
Schedule Form(s) 8814 . . b . .Form . . c. . 962
. 4972 . election
. . 8a44

1040
dependent,
45 Department of the Treasury—Internal
Alternative minimum taxRevenue
(seenot Service
instructions). (99)
include on Attach
2011
line 8a Form . . 6251 . . . . . . . . . 45
Form

see b Tax-exempt interest. Do . 8b

Form(s) 46 U.S.
instructions.
Attach Individual 45Income . Tax . Return . . . . . . . . . . OMB . . . No. 1545-0074 IRS Use Only—Do 46 not write or staple in this space.
9Add
a lines
Ordinary44 and dividends. . .Attach .Schedule . .B if. required . . . . . . . . . . . ▶ 9a
W-2
For here.
• Allthe year Also
others: Jan. 1–Dec. 31, 2011, or other tax year beginning , 2011, ending , 20 See separate instructions.
47 Foreign tax credit. Attach Form. 1116 . .if required
. . .. .. .. .. . 47
attach
Single
Your or name and initial b Qualified dividends . Last
Forms
first name
9b
Your social security number
Married
W-2G and filing 48 10 Credit for child and dependent care expenses. Attach Form
Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 2441 48 10
separately,
1099-R
$5,800 if tax 49 11Education Alimony credits
receivedfrom Form
. . 8863, . . line . 23 . . . . . . . . . . . . . 49 . . . . . . . . 11
was withheld.
If a joint return, spouse’s first name and initial Last name Spouse’s social security number
SAMPLE TAX FORM

Married filing 50 12Retirement Business savings

incomecontributions
or (loss). Attach credit. AttachCForm
Schedule or C-EZ 8880. . 50 . . . . . . . . 12
jointly or
Qualifying 51 13ChildCapital tax creditgain(see instructions)
or (loss). Attach Schedule . . . D. if required.
. . . If .not required, 51 check here ▶ 13
IfHome
widow(er),
you did address
not (number and street). If you have a P.O. box, see instructions. Apt. no.
$11,600 52 14Residential Other gainsenergy orcredits.
(losses).Attach
AttachForm Form56954797 . . . . . . . . . . 52 . . . . . . . . ▲ Make sure the SSN(s) above
14
get a W-2, and on line 6c are correct.
Head
see
City,
of
instructions.
53 15Other a credits
IRA from Form: a .
distributions 3800
15a b 8801 c 100,000 00
town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
b 53
Taxable amount . . . 15b 100,000 00
household, 54 16Add are your total credits . . . b . Taxable 54Presidential Election Campaign
$8,500 a lines
Pensions47 through 53. These16a
and annuities . . amount. . . .. .. .. 16b
55 17Subtract linereal
54 estate,
from line 46. If line 54 is more than line 46, enter -0- etc. . Attach
. . Schedule. . . E ▶ 17 Check here if you, or your spouse if filing
Rental royalties, partnerships, S corporations, trusts, 55
jointly, want $3 to go to this fund. Checking
Foreign country
Enclose, but doname Foreign province/county Foreign postal code
56 18Self-employment
Farm incometax. AttachAttach
Schedule SE F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . a56
Other
not attach, any
or (loss). Schedule 18 box below will not change your tax or
refund. You Spouse
57 19Unreported Unemploymentsocial security and Medicare
compensation . . tax. from . . . a . .4137
. Form: . . .b . 8919 . . .. .. 1957
Taxes
payment. Also,
Filinguse
please Status 58 201Additionala Social Singletax on IRAs,
security 20a retirement plans, etc. Attachb4Form
other qualified
benefits Head
5329
Taxable ifofrequired
amount household . .(with 20b58 person). (See instructions.) If
. . .qualifying
Form 1040-V. 59a 21 2Household Married
Other filingList
employment
income. jointly
taxes
type (even
fromifamount
and only one had
Schedule H income)
. . . . . . . the . qualifying
. . . person . . is a. child 21
but
59anot your dependent, enter this
Check only one b 22 3First-timeMarried
Combine homebuyer
thefiling separately.
credit
amounts Enter
in repayment.
the far right spouse’s
Attach for
column FormSSN 5405
lines above 21. This. ischild’s
if required
7 through name
.your. total . here.
. income
▶
. .▶ . 59b
22
box. and full name here.from
▶ 5 Qualifying widow(er) with dependent child
60 23OtherEducator taxes. Enter code(s)
expenses . instructions
. . . . . . . . . 23 60
Adjusted
Exemptions
Gross
Payments 62 Federal
61 24 6a
Add lines Yourself.
Certain
b fee-basis
55
income
through
business
Spouse
Ifexpenses
someone
60. This
. . officials.
tax withheld
government
is
of
. from
canyour claim
total
reservists,
. Attach
.Forms
. Form
youtaxas a. dependent,
performing
.W-2 . and
2106
. .
artists,
. or1099
.2106-EZ
.
and .do .not. check
. . . . . . 24
. . box .
. . . . . . . . . .
62
}
6a. . . . . . ▶. . 61 Boxes checked
on 6a and 6b
No. of children
10,000 00
Income 63 252011 c Dependents:
estimated
Health tax payments
savings accountand amount (2)
deduction. Dependent’s
applied
Attach from
Form2010 8889 (3)
return. Dependent’s
2563 (4) ✓ if child under age
qualifying for child tax credit
17 on 6c who:
• lived with you
If you have a social security number relationship to you
64a(1)26First
Earnedname income credit
Moving expenses. Last name
(EIC) . . 3903
Attach Form . . . . . . . . . . . . . . 26 64a (see instructions) • did not live with
qualifying you due to divorce
b 27Nontaxable combat
Deductible pay
part of election 64b
self-employment tax. Attach Schedule SE . 27 or separation
38 Ifchild,
moreattach
than four (see instructions)
Schedule EIC. 65 28Additional child tax credit.
Self-employed SEP, Attach
SIMPLE,Form
and8812
qualified. plans
. . . . . . . 28 65
dependents, see Dependents on 6c
INDEX

A I (continued) R
Accrued Interest Purchased �������������������������������������15, 29 IRS Form 1099-INT�������2, 7-9, 14-16, 20, 22, 25, 29-32, 35 Real Estate Investment Trusts
(REITs)�������������������������������������������������������������� 8, 15-17, 20, 22
Accrued Interest Received������������������������������������������� 9, 15 IRS Form 1099-MISC���������������������������������������������� 2, 17, 28
Real Estate Mortgage Investment
Acquisition Premium������������������������������������������� 25, 27, 32 IRS Form 1099-OID�����������������������2, 8, 22, 25-26, 32, 35
Conduits (REMICs)������������������������������������� 2, 9, 16, 32-36
Adjusted Issue Price ������������������������������������������� 27, 32, 33 IRS Form 1116����������������������������������������������������������������22, 29
Realized Profit or Loss��������������������������������������������������� 7, 13
Aggregate Profit or Loss����������������������������������������������������13 IRS Form 2439�������������������������������������������������������������������� 20
Regulated Futures Contracts��������������������������������������������13
Alternative Minimum Tax (AMT)��������������������� 14, 15, 31 IRS Form 4797���������������������������������������������������������������� 4, 37
Retirement Account Distributions���������������������������������38
IRS Form 4952�������������������������������������������������22, 24, 36-37
B Return of Principal Distributions ���������������������������� 25, 33
IRS Form 6251�������������������������������������������������������� 15, 30-31
Backup Withholding �����������������������������������������������������8, 17 Revised Tax Information Statement������2, 8, 16, 20, 22, 33
IRS Form 6781�����������������������������������������������������������������4, 13
C IRS Form W-8BEN or W-8IMY����������������������������������������� 8 S
Capital Gain Distributions�����������������������������������������������23 IRS Form W-9����������������������������������������������������������������������� 8 Securities Purchased���������������������������������������������������������29
Collateralized Debt Obligations (CDOs)���� 14, 16, 32-35 IRS Publication 550 ������������������������������ 2, 6, 10, 17, 22, 25 Settlement Date������������������������������������������������������9, 15, 29
Collateralized Mortgage IRS Publication 1212����������������������������������� 2, 14, 16, 25-26 Short Sales����������������������������������������������������������������������� 9-10
Obligations (CMOs)���������������������������������������������������32-35
Social Security Number ����������������������������������������������������� 8
L
D State and Local Taxes�������������������������������������������������������26
Liquidation Distributions �������������������������������������7, 20, 29
Dividends and Distributions ������������������������������������� 17-22 Stock Dividends �����������������������������������������������������������20-21

Duplicate Tax Forms����������������������������������������������������������� 2 M Substitute Payments in Lieu of

Margin Interest Expense��������������������������������������������22, 24 Dividends or Interest��������������������������������������������������� 17, 28
E Miscellaneous Income ���������������������������������������������������� 28
Employer Identification Number ������������������������������������� 8
T
Municipal Original Issue Discount (OID)�������������� 30-35
Taxpayer Identification Number ������������������������������ 8, 38
Equity Options Transactions �����������������������������������������������29
Mutual Funds���������������������������������������� 8, 15-17, 20-23, 27
Tax Information Statement Summary������������������������� 7-8
Exempt Accounts����������������������������������������������������������������� 8
N Trade Date����������������������������������������������������������������9, 10, 29
F Nominee Recipients���������������������������������������������������� 16, 20 Transferred Accounts��������������������������������������������������������� 2
Federal Income Tax Withheld����������������������������4, 7, 8, 17 Treasury Bills�������������������������������������������������������������������9, 14
Nondividend Distributions������������������������������������7, 17, 20
Foreign Corporations, Interest Income������������������������� 14 Trust Sales ���������������������������������������������������������������������� 9, 36
Nonwidely Held Fixed Investment Trusts
Foreign Tax Credit������������������������������������������������������22, 29 (NWHFITS) �������������������������������������������������������������������� 9, 36
Foreign Tax Paid���������������������������������������������������� 14, 17, 29
U
O Unit Investment
I Options, Equity �������������������������������������������������������������������29 Trusts (UITs)��������������������������� 9, 15-17, 20, 22, 27, 36-37

Interest Income������������������������������������������14-16, 27, 29-33 Ordinary Dividends��������� 14-15, 17-19, 25, 29, 31-32, 35 Unrealized Profit or (Loss)������������������������������������������������13

Interest on U.S. Savings Bonds and Original Issue U.S. Corporations, Interest Income������������������������������� 14
Treasury Obligations���������������������������������������� 9, 14-15, 25 Discount (OID)�������������������������������2, 7, 14, 25-26, 30, 34 U.S. Government Agencies, Interest Income ������������� 14
Investment Interest Expense�����������������������������24, 29, 37 Other Periodic Interest����������������������������������������������26, 35
IRS Form 1040��������������������������������2-3, 8-11, 14-20, 22-38
W
P Widely Held Fixed Investment
IRS Form 1040, Schedule A����14, 17-18, 24, 26, 29, 31, 33, 36-37
Partnership Cash Distributions���������������������������������������29 Trusts (WHFITs) ����������������������� 8-10, 15-17, 20, 22, 27, 36
IRS Form 1040, Schedule B �����14-20, 25-27, 29, 32, 35
Payer�������������������������������������������������������������������������������� 8, 38 Widely Held Mortgage
IRS Form 1040, Schedule D����������������3-4, 6, 9-11, 13, 17, Trusts (WHMTs)�������������������������������������������� 8-9, 15-16, 36
19-20, 22-23, 29, 36-37 Proceeds from Broker and Barter
Exchange Transactions����������������������������������������� 2, 4, 9-11
IRS Form 1040, Schedule E ��������������������������������������������� 28, 37
IRS Form 1096����������������������������������������������������������������������� 8 Q
IRS Form 1099-B�������������������������������������������������������2-13, 29 Qualified Dividends�����������������������������������17-19, 21-22, 29
IRS Form 1099-DIV �������������������� 2, 7-8, 17-18, 20-22, 29

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