Plain & Simple
Tax Information from Pioneer
2014 1099-B and Cost
Basis Information
Dear Shareowner,
Internal Revenue Service (IRS) regulations require
Pioneer to calculate and report to the IRS both the
proceeds and the cost basis of shares that were held in
eligible accounts and were redeemed or exchanged in
2014. In conjunction with reporting cost basis, Pioneer
will calculate and report to shareowners the gain or loss
for those transactions.
We urge shareowners to read this brochure and carefully
examine their enclosed IRS Form(s)1099-B. Your Form
1099-B includes all the information required by the
IRS, which Pioneer hopes it has presented in a manner
that should help you when completing Form 8949 and
Schedule D for your 2014 tax return.
If you have questions about your Form 1099-B please
contact Pioneer at 1-800-225-6292 and one of our
Customer Services Representatives will be happy to
assist you.
Thank You,
Pioneer Investment Management Shareholder
Services, Inc.
Understanding your Form 1099-B
Your IRS Form 1099-B reports gross proceeds from sales of
mutual fund shares and, when available, the cost basis of
those shares. Pioneer reports 1099-B information in separate
categories depending on the holding period of the shares sold
(long-term or short-term) and whether or not the cost basis is
being reported to the IRS. There may be only one or there may be
multiple categories on your 1099-B.
It is important to note that the information in each section of
your 1099-B corresponds directly to a section of IRS Form 8949
(discussed below), which you must complete and file with your
Federal Tax Return. The separate sections on your Form 1099-B
enable you to more easily complete Form 8949.
The cost basis for covered shares is reported to you and the
IRS, whereas the cost basis for noncovered shares is only
reported to you.
A redemption or exchange can include both covered and
noncovered shares because the redemption can be comprised of
shares purchased at different times. The redemption transaction
will be reported in the appropriate category by covered shares or
noncovered shares and by long-term or short-term gain and loss.
A transaction where the type of gain or loss is undetermined or
unknown will be reported in the undetermined category.
Please carefully read “Form 1099-B Instructions for Recipient”
and “Cost Basis Information” on the back or last page of your
1099-B mailing. These two sections provide important information
such as definitions of Covered and Noncovered shares, Holding
Period and the various cost basis methods.
IRS Form 1040-Schdedule D and IRS Form 8949
In addition to Schedule D, IRS Form 8949 is now required to
report sales of securities. The information you enter on Form
8949 gets summarized and included on Schedule D. You may be
required to file multiple Forms 8949 depending on the nature of
your securities transactions and the boxes that you are required
to check near the top of Form 8949. When completing Form
8949, you should carefully follow the instructions on the Form as
well as carefully review each section on your Form 1099-B. The
information you need to complete Form(s) 8949 is provided on
Form 1099-B and is presented in a manner that we hope makes
it easier for you to complete Form 8949.
Special Situations
Return of Capital Distributions
For both covered and noncovered shares, the cost basis on your
Form 1099-B has been adjusted for non-taxable distributions
(return of capital). Your cost basis has been reduced by the
amount of the return of capital distributions.
Wash Sales
This occurs when shares are redeemed at a loss and all or a
portion of the shares are repurchased (including reinvested
dividends) within a 61-day period, beginning 30 days before the
sale and ending 30 days after the sale. All or a portion of any
loss resulting from that sale is disallowed and must be added
into the basis of the repurchased shares.
Note - Due to covered and noncovered shares of the same
fund held in the same account being treated as if held in
separate accounts for tax reporting purposes, your 1099-B
will not show a wash sale for any covered share purchase that
may have otherwise resulted in a wash sale on a redemption
of noncovered shares. You will be required to compute and
track such adjustments for tax reporting purposes. Please
refer to the instructions for Schedule D.
Sales Load Basis Deferral
A redemption may be adjusted for a sales load basis deferral
when applicable. This applies when shares are purchased and
a front-end sales load is paid, then redeemed within 90 days
of their purchase and later repurchased into the same account
using a reinvestment right where no load is charged. The amount
of the sales load must be subtracted from the cost basis of the
shares redeemed and added to the basis of the repurchased
shares. Your cost basis on your Form 1099-B has already been
adjusted to reflect any applicable sales load basis deferral.
Tax-Exempt Interest and Capital Gain Dividends
You may be required to adjust your basis and/or holding period
if you redeemed shares that you held for six months or less at
a loss and received a tax-exempt dividend or a capital gain
dividend on those shares.
Important Cost Basis Information
The Emergency Economic Stabilization Act, HR 1424, was signed
into law on October 3, 2008. It included provisions from the
Energy Improvement and Extension Act of 2008 requiring mutual
funds to provide cost basis reporting to their customers and to
the IRS for “covered shares” (shares acquired and subsequently
redeemed on or after January 1, 2012).
Pioneer is required to report gross proceeds and basis from
the redemption of covered shares on Form 1099-B to the
IRS. Additionally, Pioneer is required to report a shareowner’s
adjusted basis in the security and whether any gain or loss
on the sale is classified as short-term or long-term (the
holding period).
Useful Tools and Information
IRS Publication 550 – Investment Income and Expenses,
includes information regarding mutual fund distributions
IRS Publication 551 – Basis of Assets
Publications are available free from the IRS by calling
1-800-829-3676 (1-800-TAX-FORM) or by visiting
www.irs.gov. They provide helpful information about
mutual funds and taxes.
This material is not intended to replace the advice of a qualified attorney,
tax adviser, investment professional, or insurance agent. Before making any
financial commitment regarding the issues discussed here, consult with an
appropriate professional adviser.
Pioneer Investments
60 State Street, Boston, MA 02109
©2015 Pioneer Investments • us.pioneerinvestments.com
20027-08-0115
00127934