New cost basis rules for Natixis Funds shareholders
If you've ever sold shares of a mutual fund, you understand the importance of knowing the cost basis of your shares when you file your taxes. The following information applies only to investors who own Natixis Funds directly. If you own a Natixis fund through a brokerage firm, we encourage you to contact them to determine what their policies are.
As part of the Emergency Economic Stabilization Act of 2008, we are now required to provide cost basis information to our shareholders and the IRS on mutual fund shares purchased and sold after January 1, 2012. In order for us to meet this requirement, you will need to select the method we use for calculating cost basis. In mid September, you should have received a mailing asking you to do this. Please visit 1costbasissolution.com for more information on the types of cost basis. Unless you directed to use another method, the Average Cost method will be used to calculate your cost basis.
How this will affect your account
Shares purchased prior to January 1, 2012 are referred to by the IRS as "non-covered shares". These non-covered shares will be reflected on your Form 1099-B, but we are not required to provide their cost basis information to the IRS.
Shares purchased after January 1, 2012 are referred to by the IRS as "covered shares." These covered shares will be reflected on your Form 1099-B and we will report their cost basis to the IRS.
It's important to know that regardless of the method you choose, your non-covered shares will be sold first using the First In First Out method until they are depleted. Then your covered shares will be sold using the calculation method you selected.
The chart below summarizes how covered and non-covered shares work, and what you and the IRS will receive when you redeem shares from your account.
| When you sell shares you will receive: | When you sell shares the IRS will receive from Natixis Funds: | |
| Shares bought before January 1, 2012 ("non-covered shared") | Cost basis information on your Form 1099-B and an Average Cost Statement (if available*) | Nothing (you must report the cost basis to the IRS on your tax return) |
| Shares bought after January 1, 2012 ("covered shares") | Cost basis information on your Form 1099-B (calculated using the method you chose, or Average Cost if you did not choose) |
Cost basis information |
If you have questions, please call 800-225-5478 or visit 1costbasissolution.com.
