Cost Basis Tax Reporting & Capital Gains

Refer to www.irs.gov for detailed information on a wide range of tax issues. Investors are generally taxed on capital gains from the sale of shares in a mutual fund. A capital gain is the difference between the proceeds from the sale and the investor’s cost basis. Investors may also incur capital losses on the sale of shares.

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Cost Basis Reporting: Covered Shares

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 MLP Alpha Fund, Oppenheimer SteelPath MLP Alpha Plus Fund, Oppenheimer SteelPath MLP Income Fund, and Oppenheimer SteelPath MLP Select 40 Fund, 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 Oppenheimer SteelPath MLP Alpha Fund, Oppenheimer SteelPath MLP Alpha Plus Fund, Oppenheimer SteelPath MLP Income Fund, and Oppenheimer SteelPath MLP Select 40 Fund, 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. 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.

Please note that cost basis reporting requirements do not apply to retirement accounts.

Cost Basis Reporting: Uncovered 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. Mutual fund companies are now required to capture and report to the IRS detailed cost basis information on redemptions of shares.

For “uncovered” shares, which are shares purchased prior to January 1, 2012, or in the case of Oppenheimer SteelPath MLP Alpha Fund, Oppenheimer SteelPath MLP Alpha Plus Fund, Oppenheimer SteelPath MLP Income Fund, and Oppenheimer SteelPath MLP Select 40 Fund, 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 Oppenheimer SteelPath MLP Alpha Fund, Oppenheimer SteelPath MLP Alpha Plus Fund, Oppenheimer SteelPath MLP Income Fund, and Oppenheimer SteelPath MLP Select 40 Fund). However, we are not able to provide alternate cost basis tax reporting methods for uncovered shares.