Understanding Your Fidelity 2011 Tax Statement

Each year, we send tax statements to the Fidelity Funds Account customers our records indicate are subject to Internal Revenue Service (IRS) Form 1099 reporting. This web guide provides detailed information to help you understand your tax statement.

Mutual Fund Reporting

The IRS generally requires you to report information for each mutual fund separately in the applicable section of your federal income tax return. Do not report an aggregate total of all your dividends, and/or sales of shares from all your mutual funds under the name "Fidelity Investments." You are required to report both taxable and tax-exempt income, including any exempt interest dividends reported on your tax statement.

Tax Statement Highlights

New Cost Basis Reporting Regulations will Begin with Tax Year 2011

In accordance with new IRS rules, Fidelity has begun reporting cost basis for certain covered securities on Forms 1099-B (Proceeds from Broker and Barter Exchange Transactions) for brokerage accounts, beginning with Tax Year 2011 (printed and mailed in January - February 15, 2012). Form 1099-B may also be part of your Tax Statement and is part of the information that we are required to report to the IRS. However, since you have a Fidelity Funds account that only reports tax information about your Fidelity Mutual Funds, you will find very limited changes on your 2011 Form 1099-B (in comparison with past years) and no changes in the kinds of income and transaction information in your account that we report to the IRS. As you will see below, the new IRS rules for Fidelity Funds will only begin become applicable with tax year 2012. And they will only apply to funds purchased and subsequently sold or exchanged after January 1, 2012.

Generally, the new regulations define covered securities as follows:

• Stock in a corporation purchased on or after January 1, 2011
• Registered Investment Companies, including open-end mutual funds, and stocks acquired in dividend reinvestment plans purchased on or after January 1, 2012
• All other securities, defined by the Treasury Department, purchased on or after January 1, 2013

This means you may begin to see IRS 1099-B reporting changes for your Fidelity Funds account with your 2012 Form 1099-B (part of your Tax Reporting Statement printed and mailed in January/February 2013), which will include adjusted basis for covered mutual funds acquired on or after January 1, 2012 and subsequently sold or exchanged in 2012.

Completing Form 1040, Schedule D and the New Form 8949

As in past years, on Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, customers and the IRS will receive tax reporting on the gross proceeds from Fidelity Fund sales and exchanges. To incorporate the enhanced IRS Cost Basis rules, described above, into the Form 1040 process, the 2011 Schedule D, Capital Gains and Losses, includes the 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).

De minimis Reporting

Fidelity continues to follow IRS rules regarding de minimis reporting. This means that we are not required to send you a tax statement or report to the IRS if the amount on each of the Forms 1099-DIV, or 1099-INT is less than $10.00. However, if you had any reporting on Form 1099-B, in any amount, we will send you a complete tax statement and report the regulatory information to the IRS. We will also send you a tax statement and report to the IRS if there was any 2011 withholding to report on your statement or if any foreign tax paid is reported.

Transferred Accounts

If your account was transferred to Fidelity from another company in 2011, your tax statement only includes activity from the time you started conducting business with us. Your former brokerage or clearing firm should provide Forms 1099 and any other applicable tax reporting forms for activity that occurred while you were with them.