2011 Helpful Hints for Completing Form 1040, Schedule D

• Cost Basis and Taxes
• New Cost Basis Reporting Regulations Begin with Tax Year 2011
• Determining Cost Basis in Non-Retirement Accounts
• Fidelity Consolidated Tax Reporting Statements and Cost Basis Information
• Completing Form 1040, Schedule D and Form 8949
• Common Factors that May Result in Cost Basis Adjustments
• Enhanced Gain/Loss Reporting for Fixed Income Securities
• Enhanced Reporting for Widely Held Fixed Investment Trusts
• Trading in currencies other than U. S. dollars

Cost Basis and Taxes

In non-retirement accounts, the sale or exchange of individual securities and mutual funds, other than money market funds, is reported to you and to the Internal Revenue Service (IRS) on Form 1099-B (part of the Fidelity Tax Reporting Statement). Using Form 1040, Schedule D, you must report a summary of sales or exchanges, and their resulting gains or losses, if any, to the IRS. Generally your gain or loss is the difference between your cost basis and the proceeds from the sale or exchange. You can think of cost basis as your total cost of the security you have sold, including various adjustments.

In addition to the following information about the new IRS cost basis rules, you may wish to consult Cost Basis Legislation, also in the Tax Center of Fidelity.com.

New Cost Basis Reporting Regulations Begin with Tax Year 2011

In accordance with new IRS rules, Fidelity is reporting cost basis and other related information for certain covered securities on Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, beginning with Tax Year 2011 (printed and mailed in January - February 15, 2012). This is information that we are required to report to you and to the IRS.

Covered Securities
Generally, the new regulations define covered securities as:

• Stock in a corporation purchased on or after January 1, 2011 (not including stocks eligible for average basis)
• Registered Investment Companies, including open-end mutual funds, and stocks acquired in dividend reinvestment plans, purchased on or after January 1, 2012
• Additional types of securities, as determined by the Treasury Department, purchased on or after January 1, 2013

Determining Cost Basis in Non-Retirement Accounts

• Cost Basis Calculation Methods
• Mutual Funds
• Individual Securities
• Customer-Provided Cost Basis Information

Cost Basis Calculation Methods

There are two IRS-approved methods for calculating cost basis: "cost basis" and "average basis" (average basis is often referred to as average cost). The cost basis method uses the actual purchase cost of the shares sold (plus or minus required adjustments). The cost basis method is available for all share types. The average cost method determines an average cost per share for all shares you have accumulated. Average cost is available only for mutual fund shares and qualifying stock held in a dividend reinvestment plan (a "DRIP").

Unless you elect a different cost basis method, Fidelity will apply its default methods. Fidelity's default for mutual fund positions is average cost. Fidelity's default for all other positions is cost basis*.

We will deplete from your account positions, set to the cost basis method, on a first-in first-out ("FIFO") basis unless you make specific identification of shares to be depleted before settlement. To deplete shares on a basis other than FIFO, you can identify the individual lots you wish to sell, or you can provide a "standing instruction" to Fidelity. You can provide a standing instruction by selecting an account disposal method. This allows you to make specific identification trades using a set method. Fidelity cannot make any changes to your basis method or specific identification information once a trade has settled.

Positions set to average cost are always depleted on a FIFO basis.

See IRS Publication 550, Investment Income and Expenses, for additional information

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Mutual Funds

For mutual fund shares purchased before January 1, 2012, you can choose average cost by making an election on your tax return, and you are responsible for maintaining all records necessary to substantiate the average cost you report. Unless otherwise indicated, Fidelity provides estimated cost basis information for your mutual funds using average cost. Fidelity-provided cost basis information for mutual fund shares acquired before January 1, 2012 is not reported to the IRS and is not a substitute for your own documentation. Fidelity began tracking cost basis information for mutual funds in 1987 and is unable to provide cost basis information for any purchases made before 1987.

If you held shares of the same mutual fund in more than one account, you will need to include all of those shares you held in those accounts when you calculate your average cost for sales made in 2011 and prior years.

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Individual Securities

For covered securities, your Form 1099-B shows the "cost or other basis" as Fidelity is required to calculate it under IRS rules. We will determine the cost basis for any security sold without a specific identification according to our default methods as described above. If you made a specific identification of covered shares, that will be reflected in the cost basis on your 1099. For noncovered securities, Fidelity has provided basis information using the cost basis method and depleting shares on a FIFO basis. If you made a specific identification of noncovered shares, we will also reflect that calculation in the cost basis in your tax statement. For both covered and noncovered shares, Fidelity provides estimated gain/loss information. Fidelity's estimated gain or loss may not include all adjustments that you are required to make when completing Schedule D. Fidelity began tracking cost basis information for individual securities in 1993 and is unable to provide cost basis calculations for any purchases made before 1993.

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Customer–Provided Cost Basis Information

If Fidelity cannot provide cost basis information for a mutual fund or an individual security in your account, you can provide it, and we will report that information as your basis from that time forward. These figures will be labeled as "customer-provided" on your trade confirms and on your monthly/quarterly account statements. Please note that if you provide cost basis information on a tax lot, we will use that cost basis and the holding period date for the calculation of wash sales going forward. Note that when positions are transferred between accounts with different taxpayer identification numbers, in certain cases, Fidelity may automatically transfer the associated cost basis information and deem it to be customer-provided.

To add cost basis information:

Go to Accounts & Trade > Portfolio Summary (log in required), and select Positions in the Select Action box to the right of the account you wish to update. Next, click on the Cost Basis tab and then find the Cost Basis column and click on Enter Cost in the row of the security you wish to update. Then, in the Lots Eligible for Customer Provided Basis table, click on Update Basis, and provide the information required. Fidelity does not report customer-provided cost basis information on noncovered securities to the IRS and we generally will not accept customer-provided information for covered securities.

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Fidelity Consolidated Tax Reporting Statements and Cost Basis Information

Sample Form 1099-B for Fidelity Funds Accounts


Sample Supplemental Realized Gain/Loss Section for Fidelity Funds Accounts.

Fidelity Funds Account Statements
If you have a Fidelity Funds Account (not a brokerage account), then you will experience no change in our reporting of proceeds and related estimated cost basis information, in comparison with past years' reporting. This is because Fidelity mutual funds do not become covered securities until tax year 2012. For Fidelity Funds Accounts, we report sales and exchange proceeds on Form 1099-B (information reported to the IRS) and estimated cost basis information related to sales and exchanges in your statement's supplemental Realized Gain/Loss Sections. Information in the supplemental portion of your statement is not reported to the IRS.

Sample Form 1099-B for Fidelity Brokerage Accounts


Sample Supplemental Realized Gain/Loss Section for Fidelity Brokerage Accounts

Fidelity Brokerage Account Consolidated Tax Reporting Statements
Brokerage Account customers will find their Tax Statement redesigned with added information to support the new cost basis reporting rules. For both covered and non-covered securities, the statement provides additional information on Form 1099-B—information that appeared in past years solely in the Supplemental Realized Gain/Loss Sections of the tax statement. We have retained the Supplemental Realized Gain/Loss Sections in your tax statement in order to report additional information about certain transactions, reported on Form 1099-B, and to describe transactions which we do not report at all on the Form 1099-B. The following table summarizes the location in your tax statement of cost basis information for various types of securities.

Cost Basis Information On Your Consolidated Tax Statement

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Completing Form 1040, Schedule D and the New Form 8949

As in past years, when filing their tax returns, most customers must report all proceeds that they received during the year, as well as gain/loss information, by completing Form 1040, Schedule D, Capital Gains and Losses. In order to incorporate information from the enhanced Form 1099-B into the Form 1040 process, the Schedule D for tax year 2011 includes a new Form 8949, Sales and Other Dispositions of Capital Assets.

Form 8949 will require taxpayers to report their capital gains and losses in more detail than in previous years. For example, taxpayers must indicate whether cost basis was reported on the Form 1099-B (or that no 1099-B was received). You must list proceeds and cost basis information from each sale on Form 8949 and summarize the total short-term and long-term information on Schedule D. In addition to the information below, please see the IRS 2011 Instructions for Schedule D (and Form 8949).

How Form 8949 is Set Up and Incorporated into Schedule D

You must complete Form 8949 before you can complete your Schedule D. The Form 8949 records details of individual transactions and totals up various amounts. Totals from Form 8949 are then recorded on Schedule D.

Form 8949 is really three forms. A separate Form 8949 is required for each of the following three categories:

(A) Form 1099-B, box 3, shows basis (or otherwise indicates that basis was reported to the IRS)
(B) Form 1099-B, box 3, does not show basis (or otherwise indicates that basis was not reported to the IRS)
(C) Form 1099-B not received

Form 8949 is divided into two parts, short-term and long-term. Note: If in 2011 you disposed of property that you acquired by inheritance, please refer to the IRS Instructions for Schedule D, for further information.

Part I, Short-Term Capital Gains and Losses—Assets Held One Year or Less

• If the time between your acquisition date and date of sale is one year or less, then your gain or loss from the transaction is classified as short-term.

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

• If the time between your acquisition date and date of sale is more than a year, then it is long-term. If you acquired your shares on more than one date, then you may want to aggregate them and use "various" as the date acquired. However, you still must report separately short-term gains and losses on Form 8949 Part I, and long-term gains and losses on Form 8949 Part II.

Form 8949 column-by-column
Form 1099-B and the supplemental Realized Gain/Loss sections of your tax statement are arranged to align with the order of presentation of the columns on Form 8949.

1. Description of property - Indicate the name of the security and the number of shares, such as 100 sh. XYZ Co.
2. Code - The IRS has provided various codes to explain any adjustments you make to certain information reported on Form 1099-B. See the IRS 2011 Instructions for Schedule D, page D-10, "How to Complete Form 8949, Columns (b) and (g)."
3. Date Acquired - This is the date you acquired the shares that you sold. With the exception of short sale reporting, the IRS requires us to use the trade date (not the settlement date) as the acquisition date.
4. Date sold - This is the date you sold the shares. Once again, the IRS requires us to use the trade date (not the settlement date) as the date sold. For a short sale, this is the date that shares were delivered to close the short sale.
5. Sales price - For Fidelity Funds Accounts (not brokerage accounts), we report the gross amount as the sales price. For Fidelity brokerage accounts, we report the sales price as the net amount after commissions.
6. Cost or other basis -

   For covered securities, use the basis shown on Form 1099-B. If the basis shown on Form 1099-B is not correct, follow the Instructions to Schedule D for providing corrections.

   For noncovered securities, Fidelity estimates cost basis based on certain assumptions. You will need to verify these estimates against your own records to determine whether or not they reflect the shares you sold and/or whether you need to make further adjustments for tax-reporting purposes. For example, Fidelity's information may not be accurate if you previously sold shares and calculated a related gain or loss using a cost basis method other than the one indicated by Fidelity in your tax statement. You should verify such information against your own records when calculating a reportable gain or loss resulting from a sale. Fidelity does not report such information to the IRS and is not responsible for the accuracy of information taxpayers may be required to report to federal, state, and other taxing authorities. Consult your tax advisor for further information.

7. Adjustments to gain or loss - Use this column to enter any adjustments to gain or loss required because of a code you entered in column (b).

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Reporting short sales. Starting in 2011, the IRS requires us to report short sales in a new way. Any short sale entered into in 2011 or later will not be reported on your Form 1099-B until you have closed the short sale. In most cases, your 1099-B will show the date that you closed the short sale, the acquisition date of the security used to close the short sale, and the adjusted basis of the security used to close the short sale. If you closed a short sale in 2011 that was opened in a prior year, this transaction will not appear on your 2011 1099-B, but it will appear in one of the supplemental Realized Gain/Loss sections. All gains and losses resulting from closing short sale positions should be reported on Form 8949 for the year in which the short position is closed. For more information on short sales, see IRS Publication 550, Investment Income and Expenses (PDF) or consult your tax advisor.

Common Factors that May Result in Cost Basis Adjustments

To better understand the cost basis information presented with your tax statement, please consider the following factors which may result in adjustments to the original price paid for your securities. Other adjustments may also be necessary depending on your individual tax situation.

• Sales Charges and Commissions
• Redemption Fees
• Reinvested Dividends and Capital Gains
• Account Fees
• Wash Sales
• Worthless Securities
• Enhanced Gain/Loss Reporting for Fixed Income Securities
• Enhanced Reporting for Widely Held Fixed Investment Trusts

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Sales Charges and Commissions

• Fidelity includes sales charges and commissions in the cost basis information it provides.
• You may not be able to include the sales charge paid for a mutual fund in the cost basis of the shares sold if you bought a fund, incurred a sales charge, sold or exchanged those shares after holding them 90 days or less, and then purchased shares in the same or another fund at a reduced sales charge. Include the sales charge in the cost basis calculation for the shares purchased with the reduced sales charge. Fidelity is unable to account for this type of activity at this time.

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Redemption Fees

• For mutual fund accounts, Fidelity adds redemption fees to the cost basis of the shares sold. As a result, the cost basis reported in your tax statement might not equal the average cost basis per share multiplied by the number of shares.
• For brokerage accounts, Fidelity deducts redemption fees from the gross proceeds.

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Reinvested Dividends and Capital Gains

• The cost basis information in your tax statement includes shares purchased with reinvested dividends from both mutual funds and individual securities.
• For your mutual fund holdings, the cost basis information also includes reinvested capital gain distributions.

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Account Fees

• If you were charged a mutual fund maintenance fee and we redeemed shares to pay the fee, we will include this redemption on your Form 1099–B. You should report this transaction on your Schedule D.
• At the time of the sale or redemption, Fidelity determines a gain or loss, based on the cost basis method (average cost or cost basis) on record for this fund in your account. However, if Fidelity was using the specific shares depletion method to track your cost basis for the fund(s) subject to the maintenance fee, your gain or loss resulting from the maintenance fee redemption was calculated using the first–in first–out depletion method.

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Wash Sales

• For brokerage accounts, we may report wash sales on Form 1099-B and/or in the supplemental Realized Gain/Loss sections of your Tax Statement. For Fidelity Funds accounts, they will only appear in the Realized Gain/Loss sections. A wash sale may occur if you sell securities (including options) at a loss and, within the 61–day period beginning 30 days before and ending 30 days after the date of sale, you buy the same or a substantially identical security in the same or a different account. The additional shares are considered as having "washed" your loss, and the loss from the sale transaction should be "disallowed" for tax purposes. The loss should be added to the cost basis of the newly purchased shares, essentially deferring the loss until those shares are sold.
• Fidelity applies wash sale rules to all tax lots, regardless if they are customer-provided or not. This means that if you provide cost basis information on a tax lot, that cost basis and the holding period date will be used for the calculation of wash sales going forward.
• Fidelity generally identifies wash sales that occurred within a single taxable account as a result of the sale and purchase of the same (but not a substantially identical) security, and adjusts accordingly the cost basis information records we provide to you. However, Fidelity is unable to identify wash sales resulting from transactions involving substantially identical securities, or transactions across accounts. In summary, you should always rely on your records to determine if and when a wash sale occurs. For covered securities, you should complete Form 8949 using Fidelity-provided wash sale information from Form 1099-B, making adjustments if necessary. For noncovered securities, use the Fidelity-provided wash sale information only for comparative verification. This is true whether you hold the same or substantially identical securities in one account, or in several accounts, including accounts at different financial institutions. You will also need to rely on your own records to determine if a loss cannot be recognized as a result of transactions between related parties or as a result of the application of other tax law provisions similar to wash sale rules. Consult your tax advisor regarding your specific tax situation.

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Worthless Securities

Fidelity provides cost basis information for worthless securities in the Supplemental Realized Gain/Loss sections of your tax statement. Following your request to deem a security worthless and remove it from your account, Fidelity will remove it from your account if the security meets certain requirements. Fidelity's removal of the security from your account is not a determination that the security is worthless for federal tax purposes and the IRS is not bound by Fidelity's assessment. While the cost basis information includes the date Fidelity removed the security from your account, federal tax rules generally treat losses on worthless securities as occurring on the last day of the tax year in which they became worthless. For this reason, you generally will need to adjust the Fidelity-provided date of disposition to December 31 of the year in which the security became worthless. You may wish to consult a tax advisor to determine the proper year in which the loss should be reflected.

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Enhanced Gain/Loss Reporting for Fixed Income Securities

• Overview of Enhanced Gain/Loss Reporting for Fixed Income Securities
• Fixed Income Securities Acquired with Original Issue Discount (OID)
• Fixed Income Securities Acquired at a Premium to their Redemption Value at Maturity
• Fixed Income Securities Acquired with an Acquisition Premium
• Fixed Income Securities Acquired at a Market Discount to the Issue Price
• Cost Basis Adjustments for Tax–Exempt Fixed Income Securities

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Overview of Enhanced Gain/Loss Reporting for Fixed Income Securities

Fidelity is pleased to provide you with accretion, amortization, and related information for certain fixed income securities. Accretion and amortization adjustments are typically required when an individual bond is bought at a discount or premium when the bond is first issued, or when it is bought or sold at a discount or premium on the secondary market. Accretion and amortization affect cost basis, which in turn affects the calculation of gains and losses. For the securities on which we provide accretion and amortization information, the reporting reflects original issue discount, premium, acquisition premium, and/or market discount.

If applicable, this information is reported in the Realized Gain/Loss sections of the Fidelity Tax Reporting Statement. The IRS permits different methods to calculate cost basis, as well as amortization and accretion amounts, and Fidelity made certain assumptions about those methods when calculating this information. It is extremely important that you and/or your tax adviser read the footnotes in the Realized Gain/Loss sections associated with this information, as well as the information presented in this guide, to determine if the assumptions being made are applicable to your individual tax situation. If they are different from the method you are using, or are based on tax elections you did not make, then you will need to make further adjustments to the amount shown. Even if the assumptions are consistent with your tax situation, further adjustments may still be necessary to reflect unique tax situations or events not factored into the assumptions. The information provided and the explanations below pertain only to the federal tax treatment of these items. State tax rules vary, and you will need to contact your tax adviser, or the taxing authority of your state, for information on how to report these items on your state tax return.

Please note that Fidelity does not provide amortization, accretion, and similar adjustments for certain fixed income securities, such as securities with a maturity of one year or less, unit investment trusts, or securities of foreign issuers. For fixed income securities subject to paydowns (early repayment of principal), cost basis is adjusted using a method that takes paydowns into account and calculates original issue discount, premium, and acquisition premium using a straight-line method. Where current year premium or acquisition premium amortization is provided, the prior years' cumulative amortization is reflected in the adjusted cost basis, but we cannot provide a breakdown or the total of such prior amortization amounts. You may want to consult with your tax advisor, who is most familiar with your circumstances, before determining how to use this information for tax reporting purposes. In addition, see IRS Publication 550, Investment Income and Expenses [This content will appear in a pop–up window.] and IRS Publication 1212, Guide to Original Issue Discount Instruments [This content will appear in a pop–up window.].

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Fixed Income Securities Acquired with Original Issue Discount (OID)

Under federal tax laws and regulations, for the original issue discount rules to apply to a security, the discount at issue must be at least 0.25% of the stated redemption price of the bond at maturity, multiplied by the number of full years from the date of original issue to maturity. Otherwise, the discount at issuance is considered to be zero. Fidelity incorporates this rule in its OID calculations.

Every year, a portion of the OID is treated as if it were earned interest income. As a result, the OID earned increases your cost basis in the security. Fidelity has adjusted the cost basis reported in your statement to reflect the total OID recognized as income since the acquisition date of the security in our records as well as the OID information reported in Publication 1212. In addition, if you purchased the security at a premium or with market discount in relation to the adjusted issue price, Fidelity has incorporated a portion of that premium or discount in its calculation of the adjusted cost basis and its determination of the character of the realized gain. See the Overview of Enhanced Gain/Loss Reporting for Fixed Income Securities above for important limitations on this information provided by Fidelity.

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Fixed Income Securities Acquired at a Premium to their Redemption Value at Maturity

According to federal tax rules, if you acquired your fixed income security at a premium and make the required elections when you file your return, the premium is amortized annually using the constant yield method (also called the yield to maturity method) with semi–annual compounding. If you did not make the required elections, your gain or loss is the difference between your purchase price (as adjusted for wash sales and other required adjustments, if any) and your proceeds at disposition, making no premium adjustments. These rules apply to securities issued at par and to OID securities acquired on the secondary market at price greater than their maturity value. See the Overview of Enhanced Gain/Loss Reporting for Fixed Income Securities above for important limitations on this information provided by Fidelity.

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Fixed Income Securities Acquired with an Acquisition Premium

When OID securities are purchased at a premium over the adjusted issue price (plus any accreted OID income), the premium, called an acquisition premium, must be amortized and reflected in the calculation of the adjusted cost basis. It will impact the taxable income you will recognize each year. Fidelity has calculated the adjusted cost basis, including the acquisition premium amortization, on the assumption that you elected to use the ratable accrual method in which OID income is reduced by the pro–rata portion of the acquisition premium attributable to each year's OID earned. Here is the formula:
Current year acquisition premium =
(total acquisition premium at purchase x current year OID)
(remaining OID from the time of purchase)

The adjusted cost basis of an OID bond acquired with an acquisition premium equals the sum of the original purchase price plus OID income earned during the period you held the bond, minus the acquisition premium attributable to the OID earned. See the Overview of Enhanced Gain/Loss Reporting for Fixed Income Securities above for important limitations on this information provided by Fidelity.

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Fixed Income Securities Acquired at a Market Discount to the Issue Price

(These rules apply to both securities issued at par and with OID) Fixed income securities acquired at a market discount are purchased at less than the par value, or in the case of OID securities purchased on the secondary market, at less than the adjusted issue price. Under federal tax rules, market discount that is less than 0.25% of the stated redemption price (or OID–adjusted issue price) of the bond multiplied by the number of full years to maturity remaining at acquisition is treated as zero.

There are various rules and elections available for the treatment of market discount on your return, each of which may result in a different tax result. These rules only apply to fixed income securities issued with more than one year to maturity. Our calculation of market discount income assumed you elected to defer recognizing the market discount until the sale (disposition) of the security, and was calculated using the straight–line method from acquisition date through disposition date. For Federal tax purposes, market discount income from both taxable and tax–exempt bonds is treated as taxable interest income. Under this election, no market discount is recognized if the bond was sold at a loss.

Acquiring securities issued with one year or less to maturity at a discount may result in an acquisition discount. Different rules apply to the treatment of a gain or loss for these securities. See the Overview of Enhanced Gain/Loss Reporting for Fixed Income Securities above for important limitations on this information provided by Fidelity.

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Cost Basis Adjustments for Tax–Exempt Fixed Income Securities

In contrast to taxable fixed income securities, adjusting the cost basis of a tax–exempt security that was purchased at a premium to reflect amortization of premium (but not amortization of acquisition premium) is not optional, it is mandatory. The amortization of premium on tax–exempt securities is not deductible. Market discount does apply to tax–exempt securities. As with taxable bonds, you are required to recognize a portion of the gain at disposition of those securities as ordinary income. While OID income from a tax–exempt fixed income security is exempt from federal taxes, it may be taxable on the state level. See the Overview of Enhanced Gain/Loss Reporting for Fixed Income Securities above for important limitations on this information provided by Fidelity.

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Enhanced Reporting for Widely Held Fixed Investment Trusts

Due to IRS reporting requirements, Fidelity has enhanced tax reporting on your consolidated tax statement for holders of securities known as widely held fixed investment trusts (WHFITs). Generally securities in this category include:

• Mortgage pools (such as securities issued by agencies commonly known as Ginnie Mae, Fannie Mae, and Freddie Mac)
• Unit investment trusts (trusts holding a specified group of stocks, bonds, options, or other assets)
• Royalty trusts (such as trusts providing interest in properties producing gas, oil, or minerals)
• Commodity trusts (such as certain trusts that hold precious metals)
• HOLDRS (certain trusts which hold a specified group of stocks)

For all of these types of securities, we provide your gross income and your prorated share of all expenses, as well as information you may need to accurately report sales and resulting realized gain and loss information. Furthermore, for WHFIT securities, due to "receipt-based" reporting rules, your trust is required to report your prorated share of sales as of the date that they were sold by the trust and your prorated share of expenses as of the date on which they were incurred by the trust — not on the date any such sales and expenses are distributed to shareholders. These proceeds may not match any distributions that you may have received during the year.

Return of Principal. The manner in which we are required to report return of principal merits special attention. We report your prorated share of the sales proceeds from unit investment trusts, securities derived from mortgage pools, or real estate investment conduits (REMICs) as return of principal on Form 1099-B (reported as PRINCIPAL on the form). We report your share of return of principal, whether or not you actually received a payment, because we are reporting gross return of principal, before any expenses were deducted. These reported proceeds may not match any distributions that you may have received during the year. You must generally report return of principal on Schedule D in order to match our reporting to the IRS on Form 1099-B. In addition you should generally reduce your security's basis by the amount of the return of principal. Fidelity includes return of principal in our calculation of your estimated cost basis. If this action reduces your basis to zero, any additional return of principal should also be reported as a short-term or a long-term gain, depending upon how long you have owned the security.

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Trading in currencies other than U. S. dollars

Fidelity's support of customers trading on foreign exchanges and in foreign currencies includes our tax reporting. If you purchased a security in a foreign currency, then following its sale or disposition, the Realized Gain/Loss sections of your tax statement provides both the cost in that currency and the estimated United States dollar (USD) cost basis in the "Cost Basis" column. We calculate that estimated USD cost basis by converting the foreign currency cost into USD based on exchange rates on the trade date of the purchase.

If you sold a security in a foreign currency, these sections provide both the foreign currency proceeds and the USD equivalent proceeds in the "Proceeds" column. We calculate the USD equivalent proceeds by converting the foreign currency proceeds into USD based on exchange rates on the trade date of the sale.

If you acquired the foreign currency cost, or sold the foreign currency proceeds in exchange for USD in a separate currency transaction linked to the security transaction, then the trade date exchange rate we used is the spot rate at the time of the linked currency transaction. Otherwise, the trade date exchange rate we used is the end-of-day exchange rate.

For tax reporting purposes, you may be required to determine your actual USD cost basis, proceeds, and gain/loss based on the exchange rates on the settlement dates of the applicable transactions.

Refer to the footnotes in the Realized Gain/Loss sections of your tax statement for additional information about our calculations of USD proceeds and cost basis in connection with these types of transactions. In addition, consult your tax advisor for additional information about reporting transactions on foreign exchanges and/or in foreign currencies.

Note that if you sold or otherwise disposed of a debt instrument that is denominated in a currency other than USD or that makes a payment calculated by reference to the value of a currency other than USD, certain tax rules may require you to treat as ordinary income/loss all or a portion of your realized gain/loss.

In addition, the supplemental Currency Realized Gain/Loss section of your tax statement provides estimated cost basis, proceeds, and gain/loss information for transactions in which you dispose of foreign currency positions (i.e., exchanges of foreign currency for USD, exchanges of foreign currency for a different foreign currency.) Generally, gains and losses from these types of transactions are not reported on Schedule D, but rather as ordinary income or loss. Refer to the footnotes in this section of your tax statement and consult your tax advisor for more information.

If you have any questions or need additional information, please call 800-544-6666. Fidelity Representatives are available 24 hours a day, 7 days a week. Please remember, however, that Fidelity cannot provide legal or tax advice on your individual tax situation. For answers to those types of questions, you will need to contact your tax adviser or the IRS. You may also find the IRS website, www.irs.gov, helpful.