As custodian of your taxable account, Mainstar Trust will provide you with a quarterly electronic statement that provides information on the investments and transactions within your account. For tax reporting and payment purposes, Mainstar will provide you and the IRS with a form reporting taxable activity. Some common reporting forms include:
• Form 1099-INT, Interest Income – reports interest earned on investment vehicles such as savings accounts, certificates of deposit, and money market accounts
• Form 1099-DIV, Dividends and Distributions – reports a variety of dividends and total capital gains earned on various types of investments (e.g., mutual funds); this includes dividends that are reinvested within the account, qualified dividends (qualify for reduced capital gains tax treatment), total long-term capital gains distributions, and non-dividend distributions from the investment
• Form 1099-B, Proceeds From Broker and Barter Exchange Transactions – reports gains or losses on the sales of certain securities, generally publicly held securities
• Form 1099-OID, Original Issue Discount – reports when a bond is purchased at less than face value and the redemption price or face value is higher than the issue price (e.g., treasury bills)
You will receive these IRS reporting forms by February 15 of the year following the year of the reported investment activity. You may be required to include the taxable interest as ordinary income on your tax return, according to the IRS instructions for each type of investment income.