Consolidated Reporting Statement Tax Guide

(1)

2013 1099 Consolidated

Reporting Statement

Tax Guide

Dear Valued Client:

The purpose of this guide is to assist you or your tax professional in preparing your 2013

Federal Income Tax Return.

(2)

IMPORTANT TAX INFORMATION

The 2013 1099 and 2013 Widely Held Fixed Investment Trust (WHFIT) Tax Guides, which contain illustrated examples and explanations of tax statements you may receive, will now be available on the Disclosures page of our corporate site at http://lpl nancial.lpl.com/disclosure.htm. As LPL Financial does not provide tax advisory services, please share and consult with your tax professional before using the information contained in these guides for tax reporting purposes. Additional REMIC and/or Widely Held Mortgage Trust (WHMT) Statement May Be Pending:

If there are securities listed below, then our records indicate you held Mortgage Backed Securities such as Collateralized Mortgage Obligations (CMO), Collateralized Debt Obligations (CDO), Real Estate Mortgage Investment Conduits (REMIC) or Widely Held Mortgage Trusts (WHMT) in 2013 with LPL Financial. Additional 1099s and related tax information will be mailed to you by March 17, 2014 in connection with these assets. As a reminder, if there are securities listed below, please do not complete your tax return until you have received this additional information from LPL Financial. The following assets are characterized as REMIC or WHMT securities and therefore will be re ected on the additional tax statement mailed by March 17, 2014: CUSIP Security Description CUSIP Security Description 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24 999999999 XXXXXXXXXXXXXXXXXXXXXX24

2013 IRS 1099 CONSOLIDATED REPORTING STATEMENT Account Number: 9999-9999

CALIFORNIA FORM 592-B2 RESIDENT AND NONRESIDENT WITHHOLDING TAX STATEMENT

TOTALS FOR TAX YEAR 2013 State ID No.: 95-2834236 1. TOTAL INCOME SUBJECT TO BACKUP WITHHOLDING . . . .$10,025.00

2. TOTAL BACKUP WITHHOLDING (RATE: 7%) . . . $75.00 NON-FEDERALLY REPORTED ITEMS

TOTALS FOR TAX YEAR 2013 1. MARGIN DEBIT INTEREST . . . $0.00 2. LONG TERM OID ON EXEMPT MUNI BONDS . . . $0.00 3. BASIS ADJUSTMENTS . . . $0.00 4. RETURN OF CAPITAL OR PRINCIPAL . . . $0.00 5. LONG TERM OID ON EXEMPT MUNI SUBJECT TO ALT. MIN. TAX. . . $0.00 6. MISC TAX, SHORTFALLS AND EXEMPT INCOME INVT EXPENSES . . . $0.00 7. MISC FEES AND EXPENSES INCL. MANAGED ACCOUNT FEES . . . $0.00 8. PARTNERSHIP (MLP) . . . $0.00 9. ACCRUED INTEREST PURCHASED . . . $0.00 10. ACCRUED INTEREST PURCHASED EXEMPT. . . $0.00 11. PURCHASES . . . $0.00 12. OPTIONS . . . .PLEASE SEE OPTIONS SECTION 13. DIRECT BUSINESS MUTUAL FUND SALE TRADES . . . $0.00

2 Please note that due to California Franchise Tax Board requirements, California state backup withholding will be reported on both your California Form 592-B and your federal 1099 Consoli-dated Reporting statement. For instructions on Form 592-B, please visit: https://www.ftb.ca.gov/ forms/2014/14_592b.pdf

* This may or may not be the correct  gure to report on your income tax return. See instructions on the last page.

FORM 1099-OID ORIGINAL ISSUE DISCOUNT OMB #1545-0117

TOTALS FOR TAX YEAR 2013

IRS BOX

1. ORIGINAL ISSUE DISCOUNT FOR 2013 * . . . $0.00 2. OTHER PERIODIC INTEREST. . . $0.00 3. EARLY WITHDRAWAL PENALTY . . . $0.00 4. FEDERAL INCOME TAX WITHHELD . . . $0.00 5. FOREIGN TAX PAID. . . $0.00 6. FOREIGN COUNTRY OR US POSSESSION . . . VARIOUS 8. ORIGINAL ISSUE DISCOUNT ON U.S. TREASURY OBLIGATIONS * . . . $0.00 9. INVESTMENT EXPENSES. . . $0.00 10. STATE. . . N/A 11. STATE IDENTIFICATION NO. . . $0.00 12. STATE TAX WITHHELD . . . $0.00 FORM 1099-B PROCEEDS FROM BROKER & BARTER EXCHANGES OMB #1545-0715

IRS BOX

2A. GROSS PROCEEDS LESS COMMISSIONS AND OPTION PREMIUMS . . . $8,278,377.91 3. COST OR OTHER BASIS . . . $22,500.00 4. FEDERAL INCOME TAX WITHHELD . . . $11,972.07 5. WASH SALE LOSS DISALLOWED . . . $800.00 9. PROFIT OR (LOSS) REALIZED IN 2013 ON CLOSED CONTRACTS. . . $500.00 10. UNREALIZED PROFIT OR (LOSS) ON OPEN CONTRACTS -- 12/31/2012 . . . $275.00 11. UNREALIZED PROFIT OR (LOSS) ON OPEN CONTRACTS -- 12/31/2013 . . . $350.00 12. AGGREGATE PROFIT OR (LOSS) ON CONTRACTS. . . $400.00 13. STATE. . . N/A 14. STATE IDENTIFICATION NO. . . . N/A 15. STATE TAX WITHHELD . . . $400.00

Summary of Changes Customized to Fit Your Reporting Needs

Regulatory

New Boxes

1. Exempt-interest dividends from municipal bond funds have moved to Form 1099-DIV boxes 10 and 11 from Form 1099-INT.

2. A checkbox indicating whether basis is being reported to the IRS (Form 1099-B box 6b).

3. State backup withholding on all 1099 forms. New Rules for 2012 IRS Form 1099-B

§

§ Average Cost for sales of mutual funds or other RICs

y Will be reflected this year if you elected this

basis method.

§

§ Short Sales executed during 2012

y The trade date of the closing transaction will be

reported under Date of Acquisition (box 1b), while the settlement date of the closing transaction will be reported under Date of Sale (box 1a).

§

§ S-Corporations

y Will be required to have sales of covered securities

acquired on or after January 1, 2012, reported on IRS Form 1099-B. This will include reporting adjusted basis, as well as any wash sales when the purchase and sale transactions occur within the same account.

y Are subject to backup withholding if an appropriate

W-9 has not been provided to LPL Financial.

Form Enhancements

1. Supplemental State Tax Information: For income received from municipal bond funds, this section will show what portion of the income is sourced from each state and from federal obligations such as U.S. Treasury Bills. This year, we have enhanced this to report by dollar amount rather than percentage.

2. Flexible Billing: For advisory fees charged to IRAs that are being paid through brokerage accounts, we will now report the IRA advisory fees on these brokerage account 1099s.

3. Summary of Revisions Box (for Revised 1099s only): This will now be moved to the first page to allow you to easily identify the Securities that have amended or reclassified their dividend information and are listed by CUSIP, security description, form and box number. 4. Option Premium: Ahead of the 2014 requirement to

report sale of options and option premium information,

we are adding option premium information directly to the 1099-B as an adjacent column to help you reconcile to the gain/loss amounts shown on your Form 1099-B or adjust the gain/loss calculations in columns (f) and (g) of your IRS Form 8949.

5. Principal distributions will show cost on the 1099-B: Due to LPL Financial defaulting to the accounting method of recognizing gain or loss when the position has been disposed, principal distributions paid by mortgage-backed securities were previously reported on Form 1099-B without any cost basis indicated. This year we are making our accounting method more clear by reflecting the appropriate cost and gain/loss on Form 1099-B. Should you elect a different accounting method, please consult with your tax professional to adjust your cost and gain/ loss calculations. These principal distributions will not be covered under the cost basis legislation until 2014.

2013 IRS 1099 CONSOLIDATED REPORTING STATEMENT

FORM 1099-DIV DIVIDENDS AND DISTRIBUTIONS OMB #1545-0110

IRS BOX

1A. TOTAL ORDINARY DIVIDENDS1 . . . $90,065.01 1B. QUALIFIED DIVIDENDS . . . $24,401.45 2A. TOTAL CAPITAL GAIN DISTRIBUTIONS . . . $30,427.88 2B. UNRECAP. SEC. 1250 GAIN. . . $0.00 2C. SECTION 1202 GAIN . . . $0.00 2D. COLLECTIBLES (28%) GAIN . . . $0.00 3. NONDIVIDEND DISTRIBUTIONS . . . $3,425.67 4. FEDERAL INCOME TAX WITHHELD . . . $0.00 5. INVESTMENT EXPENSES. . . $0.00 6. FOREIGN TAX PAID. . . $0.00 7. FOREIGN COUNTRY OR U.S. POSSESSION . . . VARIOUS 8. CASH LIQUIDATION DISTRIBUTIONS . . . $28,291.47 9. NONCASH LIQUIDATION DISTRIBUTIONS . . . $0.00 10. EXEMPT-INTEREST DIVIDENDS . . . $0.00 11. SPECIFIED PRIVATE ACTIVITY BOND INTEREST DIVIDENDS . . . $0.00 12. STATE. . . N/A 13. STATE IDENTIFICATION NO. . . N/A 14. STATE TAX WITHHELD . . . $0.00

FORM 1099-MISC MISCELLANEOUS INCOME OMB #1545-0115

IRS BOX

1. RENTS . . . $0.00 2. ROYALTIES. . . $0.00 3. OTHER INCOME . . . $0.00 4. FEDERAL INCOME TAX WITHHELD . . . $0.00 8. SUBSTITUTE PAYMENTS IN LIEU OF DIVIDENDS OR INTEREST. . . $0.00 11. FOREIGN TAX PAID. . . $0.00 12. FOREIGN COUNTRY OR U.S. POSSESSION. . . VARIOUS 16. STATE TAX WITHHELD . . . $0.00 17. STATE IDENTIFICATION NO. . . N/A FORM 1099-INT INTEREST INCOME OMB #1545-0112

IRS BOX

1. INTEREST INCOME. . . $6,975.00 2. EARLY WITHDRAWAL PENALTY . . . $0.00 3. INTEREST ON U.S. SAVINGS BONDS & TREAS. OBLIGATIONS . . . $1,591.72 4. FEDERAL INCOME TAX WITHHELD . . . $0.00 5. INVESTMENT EXPENSES. . . $0.00 6. FOREIGN TAX PAID. . . $0.00 7. FOREIGN COUNTRY OR U.S. POSSESSION. . . N/A 8. TAX-EXEMPT INTEREST. . . $801.24 9. SPECIFIED PRIVATE ACTIVITY BOND INTEREST . . . $314.81 10. TAX-EXEMPT BOND CUSIP NO . . . VARIOUS 11. STATE. . . SEE DETAILS 12. STATE IDENTIFICATION NO. . . SEE DETAILS 13. STATE TAX WITHHELD . . . $0.00

Federal or state tax withheld amounts represent backup withholding applied due to missing W-9 certi cation, an IRS “B” Notice or “C” Notice. 1 Per IRS 1099-DIV Instructions for Box 1A, includes net short-term capital gain distributions from mutual funds; Tax-exempt dividends are reported on 1099-DIV Box 10.

Recipient’s Tax Identi cation Number: 99-9999999 Account Number: 9999-9999

Courtesy Form Corrected on 02/20/12

Your Financial Advisor John Representative

(999) 999-9999

Rep ID: 44FB

90 FP 1 B 1 1 A 10061 10061 **5 DGT INFORMATION LINE (OPTIONAL) JOHN A INVESTOR C/O LINE DELIVERY ADDRESS DELIVERY ADDRESS ANYTOWN ST 12345-1234

Department of the Treasury - Internal Revenue Service (keep for your records) This statement is being provided for your information only and generally will not be furnished to the Internal Revenue Service. However, this reporting exemption does not apply for any payments listed in 1099-MISC Box 8 and any tax credit bonds listed on Form 1099-INT. If you are required to  le 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.

1 2 3 ENV*

Doc

ument S

amples designed and pr

oduced b y DST O utput using D igital Pr ess Technology PROPRIET

ARY AND CONFIDENTIAL:

Not to be disclosed to third parties or used for other than recipient’

s own internal purpose.

The statement appearance will differ from this Conceptual Design based on paper and DST Output production line.

Image(s):

Copy B For Recipient

LPL Financial Member FINRA / SIPC 4707 Executive Drive San Diego, CA 92121 Federal ID No: 95-2834236

(3)

About This Guide

This guide contains illustrated examples and explanations of statements that you may receive depending on the type of reportable income you have in your account(s) held at LPL Financial.

This guide is provided for informational purposes only and is compiled from reliable sources, but is not guaranteed. LPL Financial does not provide tax advisory services. It is recommended that you consult with your tax advisor or accountant before using this information for tax reporting purposes. Standard IRS instructions for each form are available on the last pages of your tax statement. Your 1099 Consolidated Reporting Statement includes information on those securities held in your LPL Financial account. All taxable dividends, interest and Original Issue Discount (OID) reflected on this form should be reported on your tax return using LPL Financial as the payor rather than the individual companies that paid the dividends or interest.

While using this information to prepare your tax return, keep in mind that the IRS uses a matching system whereby it matches the items reported on your 1099 Consolidated Reporting Statement with the items you report on your tax return. In general, you should report all amounts shown on your 1099 Consolidated Reporting Statement and then make adjustments, if necessary. Additionally, in an effort to minimize the risk of identity theft, LPL Financial will display only the last four digits of your individual taxpayer identification number (TIN) on your 1099 Consolidated Reporting Statement. This will only apply to the Form 1099 and 5498 series, and will not apply to business employer identification numbers (EINs).

Due to the new tax law changes explained in this booklet, a glossary is available in the back to help clarify new terms referenced.

Special Notice: Income Reclassification and Delayed Reporting

Although we provide our most up-to-date information on your 1099 Consolidated Reporting Statement, income distributions may be reclassified after the 1099 Consolidated Reporting Statement has been mailed to you. A common example occurs when a payment originally classified as a dividend is later reclassified by the issuer as a capital gains payment. If there is a reclassification or change, we will send you a corrected 1099 Consolidated Reporting Statement after we receive the new information. RICs (which include mutual funds and closed-end investment funds), REITs, unit investment trusts (UITs), utilities and foreign companies are among the issuers that sometimes change the nature of their distributions. A list of securities will display on the first summary page, showing which securities

caused a revision, and which IRS form(s) and box(es) were impacted. In addition, the issuers of certain debt securities, including Collateralized Mortgage Obligations (CMOs), Collateralized Debt Obligations (CDOs), Real Estate Mortgage Investment Conduits (REMICs) and Widely Held Mortgage Trusts (WHMTs) may not advise us of the final status of their payment until as late as March 2014. If you held a CMO, CDO, REMIC and/or WHMT in 2013, your enclosed 1099 Consolidated Reporting Statement is incomplete. You will receive one or more additional tax statements from LPL Financial detailing the taxable information for these assets. If you held these types of investments, please do not file your tax return until you receive this additional statement(s).

Federal and State Backup Withholding

LPL Financial is required by law to withhold federal (and wherever applicable, state) income tax from all reportable dividends, interest and gross proceeds paid to certain U.S. persons (including trusts, partnerships, etc.) who fail to furnish a valid taxpayer identification number (TIN) or appropriate certification (IRS Form W-9), whom we have been notified by the IRS has an incorrect name or TIN, or an under-reporting of dividend or interest income. This is known as “Backup Withholding.” Federal income tax is generally reported in Box 4 of all 1099-DIV, -INT, -B, -MISC, and –OID sections. State income tax withheld is also reported on all 1099 forms. Include these amounts on your income tax return as tax withheld.

(4)

Recent IRS Regulatory Changes

Cost-Basis Reporting Overview

Background

In one of several strategies to close the $345 billion tax gap identified by the United States Government Accountability Office (GAO) in 2001, Section 403 of the Energy Improvement and Extension Act of 2008 amended Internal Revenue Code Section 6045 to mandate that every broker additionally report a customer’s adjusted basis and holding period when reporting a customer’s sale of a covered security. A “covered” security is a security subject to the basis reporting requirements if it is acquired after its effective date. Covered securities are exclusive to securities acquired for cash.

Using a three-year phase-in approach since January 1, 2011, cost basis reporting is required for:

Effective Date Covered Securities

Phase 1: January 1, 2011

§

§ Equities, exchange-traded funds

(ETFs), exchange-traded notes (ETNs), and real estate investment trusts (REITs) purchased on or after 2011

§

§ Unit investment trusts (UITs)

structured as regulated investment companies (RICs)

§

§ Stock acquired through the exercise

of rights distributed by an issuer Phase 2:

January 1, 2012 §

§ Regulated investment companies

and dividend reinvestment plans (DRPs) purchased in 2012 § § Equities transferred to a DRP in 2012 Phase 3: January 1, 2014 §

§ Fixed Income Debt Instruments,

Options and Other Securities purchased in 2014

Securities not covered: §

§ Restricted stock granted by an employer (because this

is not acquired for cash). §

§ Stock acquired in 2011 is no longer a covered security if

it is transferred to a DRP in 2011, but remains a covered security if transferred to a DRP after 2011.

In addition: §

§ Brokers must report your adjusted basis using your

elected accounting method.

y If an accounting method was not elected and you

have sold less than your entire position in the security, brokers must report your adjusted basis using the default method of first-in, first-out (FIFO). §

§ When the custody of specified securities transfers to

another broker, the delivering broker must furnish a transfer statement to the receiving broker, within 15 days after settlement, containing sufficient information to determine your adjusted basis and holding period. §

§ Issuers of securities (such as equity issuers, mutual

fund sponsors, etc.) must report to you and the IRS if a corporate action affects the basis of your security. Form 2439, which reports your Undistributed Long-Term Capital Gains retained by an RIC or REIT, is considered an issuer’s return, and the effects of the amounts reported on this return should be taken into account when calculating your adjusted basis for the year the security is covered.

The Act also gives brokers until February 15 of the following year to furnish the 1099 Consolidated Reporting statement to you.

Note: Please be advised that due to the cost-basis legislation described above and in the pages to follow, the number of revised 1099s is expected to rise

(5)

How Do the Rules Impact Your 1099-B?

Additional Boxes

For sale transactions, your 1099-B will include the date you purchased the security, your adjusted basis (which accounts for return of capital distributions, corporate actions,

reinvestments, etc.), any losses disallowed from a wash sale activity, whether the securities sold are covered or not covered by the basis legislation, whether the cost-basis information will be reported to the IRS, and whether the gain or loss you recognized is short-term or long-term. While we are providing you full disclosure of all covered and non-covered transactions, the IRS requires us to furnish information to them on only covered transactions.

Forms Brokers Have to File per Each Transaction

Previously, the IRS required each sale transaction

reported in the 1099-B section of your 1099 Consolidated Reporting Statement to be treated as a separate 1099-B form. Under the new legislation, the IRS now requires that each of the sales described below be reported on a separate 1099-B form, even if all three types were sold in a single sale transaction:

§

§ Covered securities with short-term gain or loss

§

§ Covered securities with long-term gain or loss

§

§ Non-covered securities (basis and gain or loss

information not required)

As a result, LPL Financial will display your sale transactions in a rolled-up format, where your sale trades will be broken out and subtotaled by:

§

§ Covered securities with short-term gain or loss

§

§ Covered securities with long-term gain or loss

§

§ Non-covered securities with short-term gain or loss

§

§ Non-covered securities with long-term gain or loss

§

§ Securities with Unknown Basis or Holding Period

Each category listed above will be reported to the IRS as a separate 1099-B form, with the exception of non-covered securities, where we will continue to only report gross proceeds to the IRS.

For a single sale transaction comprised of blocks of shares with multiple acquisition dates, “Various” will display in the Date Acquired column, and the same will be reported to the IRS.

Short Sales

Under the same amendments to Section 6045, the IRS requires brokers to report sales of securities opened on or after January 1, 2011, for the year the short sale is closed. Therefore, LPL Financial will not report short sales opened in 2013 for calendar year 2013 if the short sale remains open on January 1, 2014. If the short sale is opened in 2013 and is closed in 2014, LPL Financial will report the short sale for calendar year 2014.

1099-B

DETAILS - PROCEEDS FROM SALE TRADES OR EXCHANGES AND TAX WITHHELD

The proceeds stated on this page are reported net of option premiums. However, option premiums are built into the gain or loss amounts computed below. If you have securities sold because of the exercise of an option granted or acquired before 2014, we have included option premium information as a separate column on this page, to help you reconcile to the gain/loss amount shown on this statement. Should you elect to report net of option premiums, you must adjust your gain/loss amounts on your Form 8949.

GROSS PROCEEDS WASH SALE

DATE OF (LESS COMMISSIONS AMOUNT WASH SALE COLLECTIBLES DATE OF SALE OR AND OPTION COST OR OPTION ADJUSTMENT LOSS ALLOCATION SECURITY DESCRIPTION CUSIP ACQUISITION EXCHANGE PREMIUMS) OTHER BASIS GAIN OR (LOSS) PREMIUM TO BASIS 2 DISALLOWED3 FACTOR (CAF)4

(BOX 8) (BOX 1D) (BOX 1B) (BOX 1A) (BOX 2A) (BOX 3) (BOX 5) SHORT-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD ONE YEAR OR LESS (BOX 1C)

COVERED (BOX 6B): FORM 8949 (BOX A) WITH BASIS REPORTED TO THE IRS

UCB B93562120 1/5/2011 12/21/11 23,089.70 20,000.00 3,089.70 250.00 0.00 0.00

QTY (BOX 1E): 140.000 250.00

BERKSHIRE HATHAWAY INC 084670108 03/11/11 05/10/10 1,234,926.83 1,050,000.00 184,926.83 0.00 0.00 0.00

QTY (BOX 1E): 20.000

WAL-MART STORES INC 931142103 1/08/11 11/30/11 284,550.00 296,700.00 (12,150.00) 0.00 0.00 12,150.00)

TOTAL SHORT-TERM COVERED 1,260,516.53 1,071,000.00 189,516.53 250.00 0.00 (12,150.00) NON-COVERED1 (BOX 6A): FORM 8949 (BOX B) WITH BASIS NOT REPORTED TO THE IRS

ANHEUSER BUSCH INBEV SA B6399C107 07/08/10 07/08/11 115,604.44 100,000.00 15,604.44 0.00 0.00 0.00 QTY (BOX 1E): 500.000

VANGUARD INTL GRTH INVS 921910204 01/05/11 05/29/11 50,000.00 45,000.00 5,000.00 0.00 0.00 0.00 QTY (BOX 1E): 2000.000

VANGRD HI YLD CORP INVS 922031208 01/04/11 11/17/11 7,895.00 8,000.00 (105.00) 0.00 0.00 0.00 QTY (BOX 1E): 500.000

XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 4,000.00 (37,850.00) QTY (BOX 1E): 500.000

TOTAL SHORT-TERM NON-COVERED 173,499.44 153,000.00 20,499.44 0.00 4,000.00 (37,850.00) LONG-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD MORE THAN ONE YEAR (BOX 1C)

COVERED (BOX 6B): FORM 8949 WITH BASIS REPORTED TO THE IRS

FT INFLTN HEDGE 2 FE RE 30273E585 09/28/11 24,538.94 2,540.00 21,998.94 0.00 0.00 0.00

QTY (BOX 1E): 2540.000

XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 0.00 (37,850.00) QTY (BOX 1E): 500.000

TOTAL LONG-TERM COVERED 24,538.94 2,540.00 21,998.94 0.00 0.00 (37,850.00)

1 These securities are not covered under the 1st and 2nd phases of the Cost Basis accounting legislations passed by Congress on October 3, 2008. Therefore the cost basis, acquisition date, disallowed loss from wash sales, and holding period are not being reported to the IRS for these securities. Please refer to the 2013 1099 Tax Guide online for more information on covered securities.

2 Please note that the amount displayed in this column is included in the amount listed in the Cost Or Other Basis column. If there is a wash sale adjustment amount displayed, your holding period includes the holding period of the stock or securities that were previously sold, where the loss deduction was postponed or disallowed.

3 The amounts listed in this column represent the losses you incurred from wash sales that cannot be deducted from your tax return.

4 Collectibles Allocation Factor (CAF): Represents the percentage of proceeds associated with UIT grantor trusts you sold in 2013 that contain assets considered “collectibles,” which is subject to a higher long-term capital gains rate of 28%, when units held over 1 year are disposed. Please refer to the 2013 WHFIT Guide online for details.

(6)

On your 1099-B form, the following will be reported for each security sold to open the short sale:

§

§ Box 1a – The settlement date of when the security was

delivered to close the short sale §

§ Box 1b – The trade date of when the security was

delivered to close the short sale §

§ Box 3 – The adjusted basis of the security delivered to

close the short sale §

§ Box 1c – Whether the short sale is short-term or long-term

based on the date listed in Box 1b

Each short sale will generally be reported as a single 1099-B transaction. However, if the short sale falls into any of the scenarios outlined below, LPL Financial will follow the five-category convention listed earlier and report up to three 1099-Bs to the IRS per short sale.

§

§ There is both short-term and long-term gain or loss

reported for the short sale §

§ The securities delivered to close the short sale include

both covered and noncovered securities

In addition, if backup withholding was taken from the gross proceeds when a short sale was opened in 2013, but not closed in 2013, there will be a separation in the reporting of withholding and proceeds. The withholding will be reported for 2013, but the actual short sale will be reported for the year it is closed.

As a general rule, you determine whether you have short-term or long-term gain or loss on a short sale by the amount of time you actually hold the security eventually purchased and delivered back to the broker to close the short sale. Please refer to the “Short-Term or Long-Term Capital Gain or Loss” section of IRS Publication 550 for more information.

Wash Sales

You cannot deduct losses from sales or trades of stock or securities in a wash sale. The IRS requires that LPL Financial report on your 1099-B any losses disallowed under section 1091 (wash sales) only if both the sale and purchase transactions occur in the same account with respect to covered securities with the same CUSIP number. However, you as the taxpayer must still adhere to the wash sale rules whether the sale and purchase transactions occur in the same or different accounts.

LPL Financial will add the disallowed loss amount to your basis of the acquired securities for future basis tracking. This adjustment postpones the loss deduction until you sell the new securities. Your holding period for the new securities includes the holding period of the securities previously sold.

Transferred Securities

For transferred securities to LPL Financial in 2013, if a complete transfer statement is not furnished, LPL Financial will treat the security as non-covered. However, we will file a corrected 1099-B within 30 days of receiving a transfer statement indicating that the security is a covered security.

However, we do not have to file a corrected 1099-B if LPL Financial receives the transfer statement more than three years after we filed the original 1099-B.

Corporate Actions

Previously, if you held stock that underwent a reportable change in control or capital structure such as a merger, reorganization or similar event, the IRS required brokers to report the aggregate amount of cash and the fair market value of any stock or other property you received in Box 2 of your 1099-B as gross proceeds. Now, under section 6045(g), different requirements apply to partially taxable mergers, also known as “no loss” mergers.

For partially taxable mergers, where a loss cannot be recognized, if you received both cash (also known as “boot”) and stock, the IRS requires LPL Financial to report only the difference between the fair market value of your new shares and the original purchase cost of your old shares as your adjusted basis in Box 3. Only the cash boot will then be reported in Box 2.

Example. Kyle buys 100 shares of covered stock in ABC Corporation for $5,000 in February. ABC Corporation merges with DEF Corporation in December. The merger is taxable only to the extent that boot is received. Fred receives 100 shares of DEF stock with a value of $4,700 and $800 cash boot in exchange for his ABC stock. Kyle’s resulting basis in the DEF stock is $4,700. Report the $800 cash boot in Box 2, and report $300 in Box 3 to reflect the net reduction in basis from $5,000 (for the ABC stock) to $4,700 (for the DEF stock).

For fully taxable mergers (where you may recognize a gain or a loss), the reporting requirement has not changed and your proceeds will include both the cash boot and the fair market value of the new shares you received.

Securities acquired through corporate actions—such as a stock dividend, stock split, reorganization, redemption, stock conversion, recapitalization, corporate division or other similar action—are considered a covered security if the basis of the acquired security is determined from the basis of a covered security.

(7)

Average Cost Rules

The basis reporting regulations rule how you determine the average basis of mutual fund shares:

§

§ If you elect to average the basis of mutual fund shares,

you are required to compute separate averages for fund shares held in different accounts.

§

§ You are permitted to average the basis of mutual

fund shares in one account, and not average them in another account.

§

§ Bifurcation: You are required to compute a separate

average for fund shares in an account that are covered securities and a separate average for fund shares in an account that are not covered securities.

Prior to 2012, the regulations had stipulated that an average basis election must be applied to all shares of a particular mutual fund in all accounts in which you hold the fund.

S Corps

Previously, brokers were not required to report the sale of securities owned by S Corporations or C Corporations. The basis reporting rules now require brokers to report sales of covered securities that S corporations acquire on or after January 1, 2012. This includes reporting the adjusted basis for corporate mergers, as well as any wash sales when the purchase and sale transactions occur in the same account. S Corporations are also subject to backup withholding if they have not certified their W-9 requirement.

Since this rule applies only to S Corporations, if you are a C Corporation, you must notify LPL Financial immediately if you have not done so already, by submitting an IRS Form W-9 indicating such, or LPL Financial will be required to classify you as an S Corporation by default. Because brokers generally cannot determine from name alone whether you are an S corporation or C corporation, a broker is not permitted to make a determination about corporate status for the sale reporting exemption. If you are an LLC, you may need to check with your tax professional whether you are filing as a partnership, a single-member LLC, an S Corporation or C Corporation, to determine whether the rules apply to you.

S Corporations are also subject to the wash sale rules, and losses disallowed from wash sales are reported on the 2013 1099-B in 2014.

Corporations and partnerships will also have to use IRS Form 8949 if they have to be reported on a 2013 Schedule D or Schedule D-1 form.

What to Expect for 2014:

IRS regulations require all broker/dealers to report cost-basis information on debt obligations and options acquired

on or after January 1, 2014, to you and the IRS on Form 1099-B. This reporting obligation is effective on January 1, 2014, and will be reflected on any applicable Form 1099-B you will receive in early 2015.

Scope of Debt Instrument Reporting and Phased Implementation

Based on the final regulations released on April 18, 2013, the IRS has agreed to install a phased approach between 2014 and 2017, where the scope of debt instruments for 2014 tax-year basis reporting is limited to debt instruments with “less complex” features and includes the following:

§

§ Debt instruments that provide for a single fixed

payment schedule for which yield and maturity can be determined for the instrument under §1.1272-1(b). §

§ Debt instruments that provide for alternate payment

schedules for which yield and maturity can be determined for the instrument under §1.1272-1(c) (such as a debt instrument with an embedded put or call option). §

§ A demand loan for which yield can be determined

under §1.1272-1(d).

For debt instruments with a fixed yield and fixed maturity date, and for more complex debt instruments that do not have a fixed yield and fixed maturity date, basis reporting will begin on January 1, 2016 for these debt instruments acquired on or after January 1, 2016. These include but are not limited to:

Do Not Have Fixed Yield and Fixed Maturity §

§ Contingent-payment debt instrument

§

§ Variable rate debt instrument

§

§ Inflation-indexed debt instrument

Have Fixed Yield and Fixed Maturity §

§ Debt instrument that provides for more than one rate of

stated interest (such as a debt instrument with stepped interest rates)

§

§ Convertible debt instrument

§

§ Stripped bond or coupon

§

§ Debt instrument that requires payment of either

interest or principal in non-USD currencies §

§ Certain tax credit bonds

§

§ Debt instrument that provides for a PIK feature

§

§ Debt instrument issued by a non-U.S. issuer

§

§ Debt instrument for which the terms of the instrument

are not reasonably available to the broker within 90 days of acquisition

§

§ Debt instrument that is issued as part of an investment unit

§

(8)

(whether directly or through a nominee, agent or subsidiary) unless the certificate is held by a securities depository or clearing organization described in § 1.1471-1(b)(18).

Exempt from Basis Reporting: §

§ Debt instrument with principal subject to acceleration

§

§ Short-term debt instruments

Transfer Reporting

In addition, the final regulations provide that transfer reporting for debt instruments, options and securities futures contracts will be applicable no earlier than January 1, 2015. Transfer reporting for more complex debt

instruments will apply to transfers occurring on or after January 1, 2017. See §1.6045A-1(d).

Support for Taxpayer Election

Should you provide LPL Financial written instructions, we must also take into account the following elections for basis reporting purposes:

§

§ To accrue market discount using a constant yield

§

§ To include market discount in income currently

§

§ To treat all interest as OID

§

§ The spot rate election for interest accruals with

respect to a covered debt instrument denominated in a currency other than in USD

LPL Financial must also amortize bond premium on taxable bonds when reporting basis, which offsets interest income on the bond, unless we receive a notice from your client instructing otherwise.

Options

The scope provisions in the final regulations are generally the same as laid out in the proposed regulations, except compensatory options (employee stock options) are excluded, where brokers are not permitted to adjust basis to account for the exercise of a compensatory option that is granted or acquired on or after January 1, 2014.

It is important that you consider any tax implications when placing debt obligations and option trades in their account. If you direct your financial representative to sell or exercise any of these assets, LPL Financial will execute by default on a first-in, first-out basis (FIFO). For example, the oldest shares you acquired will be depleted first and used to calculate any gain or loss on the transaction. Alternatively, you may specify particular shares to be depleted; however, this decision must be communicated to your financial representative on or before the trade settlement date. For more information regarding the new regulations, you may access it at http://www.irs.gov/irb/2013-20_IRB/ar07. html. For tax advice, please contact a tax professional.

Other 2013 Reporting

State Reporting:

Since January 1, 2011, the California Franchise Tax Board (CA FTB) has required brokers who remit backup withholding to the IRS, additionally to withhold 7% on:

§

§ Proceeds from broker and barter exchange transactions

(1099-B Box 2) §

§ Substitute payments in lieu of dividends or interest

(1099-MISC Box 8) §

§ Capital gain distributions from RICs or REITs (1099-DIV

Box 2a)

Brokers also are required to remit to the FTB for accounts with missing TIN, invalid TIN or who fail to certify exemption from backup withholding. California residents are subject to California backup withholding on payments from California and non-California sources. If California state backup withholding was applied to your account, the total tax payment will be reported to you not only on your 1099s, but also on Form CA 592-B, located on the second summary page of your 1099 Consolidated Reporting Statement. The individual state withholding transactions that aggregate to the totals listed on Form 592-B are found throughout the 1099 detailed sections, which show from which payments the withholding was taken from.

Similarly, Maine also requires LPL Financial to withhold 5% of reportable income and remit to the state for similar reasons. If Maine state backup withholding was applied to your account, the total tax payment will appear on your second summary page, followed by details throughout your 1099 Consolidated Reporting Statement.

Please note that original and corrected 1099

information transmitted to the IRS will continue to be forwarded by the IRS to states that participate in the Combined Federal/State Filing (CF/SF) Program. While New York no longer requires a 1099, other states still do. These information returns include 1099-DIV, INT, MISC, OID, R and 5498.

State Backup Withholding

The IRS now includes the reporting of state backup withholding across all 1099 forms.

Recent Foreign Regulatory Changes:

Foreign Account Tax Compliance Act (FATCA) – Reporting of Foreign Financial Assets

If you held specified foreign financial assets, such as foreign stock or other securities issued by a foreign source, with an aggregate value exceeding $50,000 in 2013, you will need to report information about those assets on new IRS Form

(9)

8938, which must be attached to your 2013 income tax return. Higher reporting thresholds apply if you file a joint tax return or if you reside outside the United States. This does not apply to foreign securities you custody at LPL Financial, but this information may be pertinent to you if you hold these specified securities outside of

your account.

Filing Form 8938 will not relieve you of the requirement to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), if you are otherwise required to file Form TD F90-22.1.

For more information, please contact your tax professional.

Canada Revenue Agency – Mandatory

25% Withholding Effective 2013

If you are invested in Canadian securities, the Canada Revenue Agency (CRA) requires you to certify beneficial ownership, residency and eligibility for treaty benefits, by completing any of the declaration forms listed below, to claim a reduced treaty rate on withholding applied to Canadian source investment income. If these forms are not received before the record date of income payment,

the default rate of 25% will apply

Form Description Account Type

NR301

Declaration of eligibility for benefits under a tax treaty for a non-resident taxpayer

Individual, joint, trust, IRAs and QRPs, estate, corporation, 529 plan

NR302

Declaration of eligibility for benefits under a tax treaty for a partnership with non-resident partners Partnership NR303 Declaration of eligibility for benefits under a tax treaty for a hybrid entity Hybrid business entities—i.e., limited liability corporations (LLCs), disregarded entities, etc.

These forms can be accessed at: http://www.cra-arc. gc.ca/menu/AFAF_N-e.html, and you may need to consult with your tax professional to determine which form is most appropriate.

Important Changes That Took Place in 2013

In 2013, the American Taxpayer Relief Act of 2012 (the “Act”) permanently extended the 10%, 15%, 25%, 28%, 33% and 35% rates on income at or below $400,000 (individual filers); $425,000 (heads of households) and $450,000 (married filing jointly) for taxable years beginning after December 31, 2012. Taxpayers that exceed these income thresholds are subject to a higher marginal tax rate of 39.6% on that income. As a result, here are the 1040 tax-rate schedules you can expect to see for the 2013 tax year for each filing status:

Qualified dividends and capital-gain distributions from RICs or REITs will permanently continue at the tax rates and income tax brackets listed below:

Single Married Filing Jointly/ _{Qualified Widower} Married Filing _Separately Head of Household

Income Thresholds Tax Rate Income Thresholds Tax Rate Income Thresholds Tax Rate Income Thresholds Tax Rate $1 – $8,925 10% $1 – $17,850 10% $1 – $8,925 10% $1 – $12,750 10% $8,926 – $36,250 15% $17,851 – $72,500 15% $8,926 – $36,250 15% $12,751 – $48,600 15% $36,251 – $87,850 25% $72,501 – $146,400 25% $36,251 – $73,200 25% $48,601 – $125,450 25% $87,851 – $183,250 28% $146,401 – $223,050 28% $73,201 – $111,525 28% $125,451 – $203,150 28% $183,251 – $398,350 33% $223,051 – $398,350 33% $111,526 – $199,175 33% $203,151 – $398,350 33% $398,351 – $400,000 35% $398,351 – $450,000 35% $199,175 – $225,000 35% $398,351 – $425,000 35% $400,000 – ……. 39.6% $450,001 – ……. 39.6% $225,000 – ……. 39.6% $425,001 – ……. 39.6%

1040 Income Tax Bracket Tax Rates for Qualified Dividends and Capital-Gain Distributions from RICs or REITs

10% – 15% 0%

25% – 35% 15%

(10)

General Information for Preparing Your 2013 Income Tax Return

Important Reporting Dates:

March 15, 2014 Form 1099-OID for CMO, CDO, REMIC issued March 15, 2014 Widely Held Mortgage Trust (WHMT) issued

March 30, 2014 Form 2439 reflecting any undistributed capital gains issued, if applicable

April 15, 2014 Personal income tax returns due; deadline for IRA documents filed to establish an account and make

contributions for the 2013 tax year

May 31, 2014 Form 5498 issued to IRA holders who made a contribution for the 2013 tax year

Separate Accounts

You will receive a separate 1099 Consolidated Reporting Statement for each of your accounts with LPL Financial.

Transferred Accounts

The 1099 Consolidated Reporting Statement reflects business conducted with your financial representative

during the time LPL Financial acted as the clearing agent. If you transferred an account to LPL Financial from another financial institution during 2013, your previous firm(s) may send you one or more Form 1099s summarizing any account activity that took place before your account was transferred to LPL Financial. Please be sure to include all Form 1099s or 1099-Rs when filing your tax returns, if applicable.

Important Changes That Took Place in 2013 (continued)

Net Investment Income Tax. Beginning in 2013, you may be subject to a Net Investment Income Tax (NIIT). The NIIT is 3.8% of the smaller of (a) your net investment income, or (b) the excess of your modified adjusted gross income over:

y $125,000 if married filing separately

y $250,000 if married filing jointly or qualifying widow(er)

y $200,000 if single or head of household

For more information, see the instructions for line 60 and Form 8960.

Personal exemption amount increased for certain taxpayers. Your personal exemption is increased to $3,900. But the amount is reduced if your adjusted gross income is more than:

y $250,000 if single

y $275,000 if head of household

See the instructions for line 42.

Limit on itemized deductions. You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than:

y $250,000 if single

y $275,000 if head of household

See the instructions for line 29 of Schedule A.

(11)

Sample Tax Statements

Included in this Tax Information Guide is a sample of the 1099 Consolidated Reporting Statement. Certain categories of transactions in this guide may not pertain to your account, and you will only receive 1099 statements for those types of income your account received during 2013.

All total income boxes are located at the front of your 1099 Consolidated Reporting Statement to help simplify your tax-preparation process. All detailed transactions are found in the pages to follow so you can reconcile to your summary pages.

1099-B Separated into Four Sections

In recent years, the IRS has pushed through several initiatives to account for underreported income. As a result, proceeds reporting on the 1099-B has grown complex. In some cases, you are required to recognize gains from income you did not tangibly receive. In the new layout of your 1099 Consolidated Reporting Statement, we have separated the 1099-B into four distinct categories, so the reasons for which we are reporting proceeds for you can be clearer.

1 Proceeds from Sale Trades or Exchanges and Tax

Withheld – Customer Initiated

2 Proceeds from Change in Corporate Control or Capital

Structure – Issuer Company Initiated

3 Principal Payments from Non-Mortgage Widely Held

Fixed Investment Trusts – Trustee Initiated

4 Regulated Futures Contracts – Not Reported in

1099-B, Box 2

1099-B – Proceeds from Broker and

Barter Exchange Transactions

Turbo Tax

You can also download your 1099-R and 1099 Consolidated Reporting Statement from LPL Financial through Turbo Tax. You will need a valid Account View

username and password, or WealthVision®_{email address}

and password, to access this information in Turbo Tax. The data will contain the latest information from our system, as well as cost basis, which will include any revisions that may have been applied. For REMIC, Widely Held Fixed Investment Trusts (WHFIT—including WHMT), and 1099-Q information, please refer to your hard-copy statements received through postal mail.

Online Tax Statements

As part of the Core Technology Pricing this year, the new and improved Account View is now available to all clients. You can access the Account View site for free to download your tax statements online. These include tax statements from the 2010 tax year and forward. Click on the Statements tab and select “Tax Statements” from the Statement Type dropdown menu. Your screen will automatically refresh, and you will only need to select the tax year you are looking for under the Tax Year dropdown menu.

WHFIT Reporting

If you held an interest in a unit investment trust, mortgage-backed security, royalty trust, HOLDRs trust or commodities trust, we are now required to report certain details regarding transactions for these securities on IRS Form 1099 because these products are considered widely held fixed-investment trusts (WHFITs). IRS rules governing reporting for WHFITs require us to provide more detailed and comprehensive information regarding these investments and is now displayed on Form 1099-B. Forms 1099-DIV, 1099-INT and 1099-OID also display items of gross income and expense as required for WHFITs. For mortgage-backed WHFITs (also known as Widely Held Mortgage Trusts or WHMTs), an additional written tax information statement will be mailed to you by March 17, 2014. Please refer to our separate WHFIT Reporting Guide and consult with your tax advisor regarding the proper treatment of your share of income and expenses for WHFITs.

IRS Assistance

Refer to the following forms and publications for

specialized information. All IRS forms and publications are available through the IRS Forms and Distribution Center at (800) 829-3676 or on the web at www.irs.gov. For taxpayer assistance, you may call the IRS at (800) 829-1040.

Publication 514 Foreign Tax Credit for Individuals Publication 550 Investment Income and Expenses

Publication 551 Basis of Assets

Publication 564 Mutual Fund Distributions

Publication 590 Individual Retirement Arrangements (IRAs)

Publication 1212 Guide to Original Issue Discount (OID) Instruments

(12)

Form 8949 (2013) Attachment Sequence No. 12A Page 2

Name(s) shown on return.(Name and SSN or taxpayer identification no. not required if shown on other side.) Social security number or taxpayer identification number

Most brokers issue their own substitute statement instead of using Form 1099-B. They also may provide basis information (usually your cost) to you on the statement even if it is not reported to the IRS. Before you check Box D, E, or F below, determine whether you received any statement(s) and, if so, the transactions for which basis was reported to the IRS. Brokers are required to report basis to the IRS for most stock you bought in 2011 or later.

Part II Long-Term. Transactions involving capital assets you held more than one year are long term. For short-term transactions, see page 1.

Note. You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a; you are not required to report these transactions on Form 8949 (see instructions).

You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.

(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS (F) Long-term transactions not reported to you on Form 1099-B

1

(a)

Description of property (Example: 100 sh. XYZ Co.)

(b) Date acquired (Mo., day, yr.)

(c) Date sold or

disposed

(Mo., day, yr.) (d)

Proceeds (sales price) (see instructions)

(e)

Cost or other basis. See the Note below

and see Column (e) in the separate instructions

Adjustment, if any, to gain or loss.

If you enter an amount in column (g), enter a code in column (f).

See the separate instructions. (f) Code(s) from instructions (g) Amount of adjustment (h) Gain or (loss).

Subtract column (e) from column (d) and combine the result with column (g)

2Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract

negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E

above is checked), or line 10 (if Box F above is checked) ▶

Note. If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.

Form8949 (2013)

1099-B

DETAILS - PROCEEDS FROM SALE TRADES OR EXCHANGES AND TAX WITHHELD

The proceeds stated on this page are reported net of option premiums. However, option premiums are built into the gain or loss amounts computed below. If you have securities sold because of the exercise of an option granted or acquired before 2014, we have included option premium information as a separate column on this page, to help you reconcile to the gain/loss amount shown on this statement. Should you elect to report net of option premiums, you must adjust your gain/loss amounts on your Form 8949.

GROSS PROCEEDS WASH SALE

DATE OF (LESS COMMISSIONS AMOUNT WASH SALE COLLECTIBLES

DATE OF SALE OR AND OPTION COST OR OPTION ADJUSTMENT LOSS ALLOCATION

SECURITY DESCRIPTION CUSIP ACQUISITION EXCHANGE PREMIUMS) OTHER BASIS GAIN OR (LOSS) PREMIUM TO BASIS 2 DISALLOWED3 FACTOR (CAF)4

(BOX 8) (BOX 1D) (BOX 1B) (BOX 1A) (BOX 2A) (BOX 3) (BOX 5)

SHORT-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD ONE YEAR OR LESS (BOX 1C) COVERED (BOX 6B): FORM 8949 (BOX A) WITH BASIS REPORTED TO THE IRS

UCB B93562120 1/5/2011 12/21/11 23,089.70 20,000.00 3,089.70 250.00 0.00 0.00 QTY (BOX 1E): 140.000 250.00

BERKSHIRE HATHAWAY INC 084670108 03/11/11 05/10/10 1,234,926.83 1,050,000.00 184,926.83 0.00 0.00 0.00

QTY (BOX 1E): 20.000

WAL-MART STORES INC 931142103 1/08/11 11/30/11 284,550.00 296,700.00 (12,150.00) 0.00 0.00 12,150.00)

TOTAL SHORT-TERM COVERED 1,260,516.53 1,071,000.00 189,516.53 250.00 0.00 (12,150.00)

NON-COVERED1 (BOX 6A): FORM 8949 (BOX B) WITH BASIS NOT REPORTED TO THE IRS

ANHEUSER BUSCH INBEV SA B6399C107 07/08/10 07/08/11 115,604.44 100,000.00 15,604.44 0.00 0.00 0.00 QTY (BOX 1E): 500.000

VANGUARD INTL GRTH INVS 921910204 01/05/11 05/29/11 50,000.00 45,000.00 5,000.00 0.00 0.00 0.00 QTY (BOX 1E): 2000.000

VANGRD HI YLD CORP INVS 922031208 01/04/11 11/17/11 7,895.00 8,000.00 (105.00) 0.00 0.00 0.00 QTY (BOX 1E): 500.000

XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 4,000.00 (37,850.00) QTY (BOX 1E): 500.000

TOTAL SHORT-TERM NON-COVERED 173,499.44 153,000.00 20,499.44 0.00 4,000.00 (37,850.00)

LONG-TERM CAPITAL GAINS OR LOSSES - ASSETS HELD MORE THAN ONE YEAR (BOX 1C)

COVERED (BOX 6B): FORM 8949 WITH BASIS REPORTED TO THE IRS

FT INFLTN HEDGE 2 FE RE 30273E585 09/28/11 24,538.94 2,540.00 21,998.94 0.00 0.00 0.00 QTY (BOX 1E): 2540.000

XYZ MUTUAL FUND 12XYZ4567 11/01/11 12/07/2011 252,800.00 290,650.00 (37,850.00) 0.00 0.00 (37,850.00) QTY (BOX 1E): 500.000

TOTAL LONG-TERM COVERED 24,538.94 2,540.00 21,998.94 0.00 0.00 (37,850.00)

1 These securities are not covered under the 1st and 2nd phases of the Cost Basis accounting legislations passed by Congress on October 3, 2008. Therefore the cost basis, acquisition date, disallowed loss from wash sales, and holding period are not being reported to the IRS for these securities. Please refer to the 2013 1099 Tax Guide online for more information on covered securities.

2 Please note that the amount displayed in this column is included in the amount listed in the Cost Or Other Basis column. If there is a wash sale adjustment amount displayed, your holding period includes the holding period of the stock or securities that were previously sold, where the loss deduction was postponed or disallowed.

3 The amounts listed in this column represent the losses you incurred from wash sales that cannot be deducted from your tax return.

4 Collectibles Allocation Factor (CAF): Represents the percentage of proceeds associated with UIT grantor trusts you sold in 2013 that contain assets considered “collectibles,” which is subject to a higher long-term capital gains rate of 28%, when units held over 1 year are disposed. Please refer to the 2013 WHFIT Guide online for details.

Account Number: 9999-9999

Form 8949 Department of the Treasury Internal Revenue Service

Sales and Other Dispositions of Capital Assets

▶ Information about Form 8949 and its separate instructions is at www.irs.gov/form8949.

▶File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.

OMB No. 1545-0074

2013

Attachment Sequence No. 12A

Name(s) shown on return Social security number or taxpayer identification number

Most brokers issue their own substitute statement instead of using Form 1099-B. They also may provide basis information (usually your cost) to you on the statement even if it is not reported to the IRS. Before you check Box A, B, or C below, determine whether you received any statement(s) and, if so, the transactions for which basis was reported to the IRS. Brokers are required to report basis to the IRS for most stock you bought in 2011 or later.

Part I Short-Term. Transactions involving capital assets you held one year or less are short term. For long-term transactions, see page 2.

Note. You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 1a; you are not required to report these transactions on Form 8949 (see instructions). You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.

(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (B) Short-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS (C) Short-term transactions not reported to you on Form 1099-B

1

(a)

Description of property (Example: 100 sh. XYZ Co.)

(b) Date acquired (Mo., day, yr.)

(c) Date sold or

disposed

(Mo., day, yr.) (d)

Proceeds (sales price) (see instructions)

(e)

Cost or other basis. See the Note below

and see Column (e) in the separate

instructions

Adjustment, if any, to gain or loss.

If you enter an amount in column (g), enter a code in column (f).

See the separate instructions. (f) Code(s) from instructions (g) Amount of adjustment (h) Gain or (loss).

2Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract

negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B

above is checked), or line 3 (if Box C above is checked) ▶

Note. If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z Form 8949 (2013)

1 Proceeds from Sale Trades or Exchanges and Tax Withheld

This detailed section reports where LPL Financial executed sale transactions (including short sales) of stocks, bonds, other debt obligations, commodities or forward contracts on your behalf.

Under the recent reporting regime, the IRS created Form 8949 as an additional measure to capture proceeds, cost basis and gain/loss information in detail; and the subtotals for each Form 8949 would be mapped to its corresponding section on the revamped Form 1040, Schedule D. You must complete all necessary pages of Form 8949 before you complete line 1, 2, 3, 8, 9, or 10 of Schedule D

This year, Form 8949 must be included if you are filing Schedule D for Forms 1040, 1065, 1065-B, 8865, 1120, 1120S, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-IC-DISC, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF and certain Forms 990-T, but not Form 1041. LPL Financial’s 1099-B accommodates how you will need to complete Form 8949 and Schedule D to recognize your gains and losses.

You must complete a separate Form 8949 for sales of: §

§ Covered securities (check Box A for short-term

transactions and Box D for long-term transactions) §

§ Non-covered securities (check Box B for short-term and

Box E for long-term) §

§ Sale Transactions for which you did not receive a 1099-B

(check Box B for short-term and Box E for long-term) In response, the 1099-B is now segmented in the order below to make it easier to follow and map to your Form 8949:

§

§ Short-Term Covered Transactions (Form 8949, Box A)

§

§ Short-Term Non-Covered Transactions (Form 8949, Box B)

§

§ Long-Term Covered Transactions (Form 8949, Box D)

§

§ Long-Term Non-Covered Transactions (Form 8949, Box E)

§

§ Unknown Basis or Holding Period (Form 8949, Box B or E)

§

§ Tax Withheld (Form 1040 Box 62)

How to Report

In general, enter the details of each transaction shown on your 1099-B on a separate line of Form 8949. You can use as many Forms 8949 as you need. However, you can also opt not to report all your transactions on a separate line and instead attach your entire 1099-B section of your 1099 Consolidated Reporting statement and enter the combined totals from all your attached statements on Form 8949 with the appropriate box checked.

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

SCHEDULE D (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Capital Gains and Losses

▶ Attach to Form 1040 or Form 1040NR.

▶ Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.

▶Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.

OMB No. 1545-0074

2013

Attachment 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

(d)

Proceeds (sales price)

(e)

Cost (or other basis)

(g)

Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)

(h) Gain or (loss)

1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . 1b Totals for all transactions reported on Form(s) 8949 with

Box A checked . . . . 2 Totals for all transactions reported on Form(s) 8949 with

Box B checked . . . . 3 Totals for all transactions reported on Form(s) 8949 with

Box C checked . . . .

4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . 4 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from

Schedule(s) K-1 . . . 5 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover

Worksheet in the instructions . . . 6 ( ) 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any

long-term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . 7

Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year

(d)

Proceeds (sales price)

(e)

Cost (or other basis)

(g)

Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g)

(h) Gain or (loss)

Subtract column (e) from column (d) and combine the result with

column (g)

8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . 8b Totals for all transactions reported on Form(s) 8949 with

Box D checked . . . . 9 Totals for all transactions reported on Form(s) 8949 with

Box E checked . . . . 10 Totals for all transactions reported on Form(s) 8949 with

Box F checked. . . .

11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . 11 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions . . . . 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover

Worksheet in the instructions . . . 14 ( ) 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on

the back . . . 15 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040) 2013