Cost Basis Tax Reporting
Please note that 1099-DIVs and 1099-Bs will mail by February 18, 2014
In compliance with IRS reporting requirements which took effect on January 1, 2011, we want to inform you of how we will track and report cost basis information for your Oppenheimer fund accounts.
Mutual fund companies are required to capture and report to the IRS detailed cost basis information on redemptions of shares. Prior to the current IRS regulations, OppenheimerFunds reported redemption proceeds on transactions to the IRS, but shareholders were responsible for calculating and reporting cost basis and short and long term capital gains or losses on their tax returns. For Oppenheimer fund “covered” shares, we track and report cost basis information for redeemed or exchanged shares, and report the information on Form 1099-B. Covered shares are shares in your OppenheimerFunds account(s) purchased on or after January 1, 2012 and subsequently sold, except in the case of Oppenheimer SteelPath funds, where covered shares are shares purchased on or after January 1, 2011, due to those funds C Corporation status.
Calculating cost basis can be complex, and there are multiple cost basis tax reporting methods available. With the exception of the Oppenheimer SteelPath funds where regulations require that the default cost basis method be First-In First Out (FIFO), OppenheimerFunds will default your account(s) to employ the Average Cost tax reporting method, unless we receive alternate instructions from you or your financial advisor. For uncovered shares, which are shares purchased prior to January 1, 2012 (or in the case of the SteelPath funds, January 1, 2011), we will report the proceeds from redemption transaction(s) on Form 1099-B; however, cost basis and the gain or loss of those shares will not be calculated or reported to the IRS. As a courtesy, we will continue to provide the supplemental Average Cost information for accounts as has been done in the past, when available (or FIFO in the case of the SteelPath funds). However, we are not able to provide alternate cost basis tax reporting methods for uncovered shares.
Please note that the cost basis default method, or any alternate method that is elected in place of the default method, will apply only to shares purchased on or after the covered shares period begins. We will include information on the chosen tax reporting method when confirming your redemption transactions or when a change to your cost basis tax reporting method is made.
There may be certain tax advantages or disadvantages to using one type of cost basis tax reporting method over another, depending on your specific financial situation. Your financial or tax advisor, aided by a full picture of your financial situation, can help determine the most appropriate cost basis tax reporting method for your needs. If you and your financial or tax advisor determine that Average Cost is not the most appropriate cost basis tax reporting method for your Oppenheimer fund account(s), you may, under certain circumstances, elect to change your standing method on one or more of your accounts. Specific restrictions may apply.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
225 Liberty Street, New York, NY 10281-1008