Tax Center

The fee (e.g. maintenance, wire or advisor fee) is a redemption that is treated as a sale of capital assets and reportable on Form 8949. When the fee is taken, we will deplete shares from your account based on the cost basis method on file for the account, and adjust the cost basis for the tax lot used for the redemption.

Please note: If the shares sold for the fee are less than one full share and the gross proceeds for the fee is less than $20, we will not report on Form 1099-B. However, you may still be required to report the sale on Form 8949. Please consult your tax advisor, or refer to IRS Publication 550 for the proper reporting of fees and other expenses.

The foreign tax reported on Form1099-DIV is based on your share of the foreign taxes paid at the mutual fund level, which is also included in the total ordinary dividends. The foreign taxes paid are based on the income the mutual fund received from its investments in foreign corporations and the taxes the fund paid to foreign governments. The annual report for the fund provides additional information regarding the calculation of the foreign tax.

If  you have met the holding period requirement, 100% of the foreign tax credit reported in column 6 on Form 1099-DIV is eligible to be claimed as a foreign tax credit this year.

Holding period requirement - At the time of the distribution, you must have held the shares for 16 days or more during the 31-day period. The 31-day period begins 15 days before the shares ex-dividend date. If you are unable to use the foreign tax credit, you may be able to claim it as an itemized deduction.

Where to report the credit - For U.S. individuals with:

• No more than $300 ($600 for married individuals filing jointly) of foreign tax and no foreign source income, other than passive income (e.g., mutual fund dividends), you may claim the credit directly on Form 1040.

• More than $300 ($600 for married individuals filing jointly) of foreign tax or who have foreign source income, other than passive income, you will need to complete Form 1116 to claim the credit. (For additional information, see Form 1116 instructions.)

Additional information can also be found in Publication 514, Foreign Tax Credit for Individuals.

If you've sold shares at a loss and repurchased substantially similar shares within 30 days and do not see a wash sale on your tax form, it may be due to one of the following reasons:

• You have sold non-covered shares at a loss, and purchased covered shares within 30 days before or after the sale. (Refer to When You Purchased Shares Matters in What the Changes to Cost Basis Mean to You)

• You have sold shares at a loss and purchased shares in the same fund with another broker within 30 days before or after the sale.

• You have sold shares from a taxable account at a loss and contributed to an IRA in the same fund within 30 days before or after the sale from the taxable account.

Generally, you should report the wash sale on your Form 8949 in column G. For more information, refer to IRS Publication 550 or the instructions for Form 8949.

If you are invested in the Real Estate Fund and/or Global Real Estate Fund in a taxable account, we will send Forms 1099-DIV and 1099-B in late February. Learn more about the postponed mail date. If you own these funds in a retirement account and sold shares, we will send Form 1099-R by the end of January the following year.

Form 5498, which is sent in May, reports your IRA contributions. Depending on the timing and account type, your transactions may appear on the form for the current tax year or the next year.

• Traditional and Roth IRA Contributions

  Any contribution made for 2023—even if it's made in 2024 before the April 18th deadline-will appear on the 2023 form.
  

• Rollover Contributions and Roth IRA Conversions

  Only transactions made during 2023 will appear on the 2023 form. Transactions made after January 1, 2024, will appear on next year's form.
  

• Recharacterized Contributions

  Only 2023 contributions recharacterized during 2023 will appear on the 2023 form, although you may recharacterize these contributions until October 15, 2024. Contributions recharacterized after January 1, 2024, will appear on next year's form.
  

• SEP IRA, SARSEP IRA and SIMPLE IRA Contributions

  Only contributions made during 2023 will appear on the 2023 form. Contributions made after January 1, 2024, for tax year 2023 will appear on next year's form.

Before your Giftrust matures, you do not have to file any of the tax returns for your Giftrust. This is taken care of by the Giftrust trustee. After your Giftrust matures, you will be personally responsible for the necessary tax reporting and payment of taxes due on distributions or capital gains. Learn more.