Tax center
Welcome to Putnam's online Tax center, designed to provide you with everything you need to help your clients navigate the tax season. Below you'll find information on capital gains distributions, AMT and tax percentages, and more.
- General
- Helping with your tax forms
- Fund tax data
- Additional resources
Capital gains
- 2017 year-end distributions
- Absolute Return 500 distribution estimates (PDF)
- Capital loss carryforward (PDF)
- What your clients might ask about year-end tax planning
Cost basis reporting
Regulations require brokers and mutual fund companies to provide cost basis reporting to the IRS for mutual fund shares acquired after January 1, 2012.
IRA contribution reports
Check in with your clients about their investment strategies:
- Run a report (login required)
- IRA check list
- 1040 Sales Idea
- IRA brochure and application
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Download investor education pieces and in-depth white papers for use in client meetings
Under tax reform, there is no turning back on a Roth conversion
Under tax reform, reduced marginal tax rates are lowering the cost of a Roth conversion, but the ability to reverse the move is eliminated.
Consider these strategies before interest rates climb higher
With many financial plans tied to IRS interest rates, there are several strategies that investors may want to consider before rates move higher.
Client seminars
Putnam's consolidated Form 1099-B lists all sell or exchange transactions from your non-Money Market mutual fund shares. Form 1099-B also reports any federal income tax withheld because of the backup withholding requirements. This information is reported to the IRS.
Putnam's Cost Basis Information is included on this form and shows the cost basis and related gain or loss from the redemption or exchange of Putnam fund shares, excluding money-market funds and retirement plans.
To view the tax filing information for a form section, click on the appropriate icon below.
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Why did I receive a Form 1099-B/Cost Basis when I only exchanged shares?
An exchange of non-Money Market mutual fund shares is considered a taxable event. An exchange is treated as a "sell" transaction in which shares are sold out of the original fund and purchased into the receiving fund(s).
What is the difference between long-term and short-term for tax purposes?If you sold shares held more than one year, the resulting gain or loss is considered long term, while shares held one year or less generate a short-term gain or loss. Long-term gains realized from your sale of fund shares, as well as those distributed by your fund, are taxed at a reduced capital gains tax rate while short-term gains and ordinary income dividends could be taxed at a higher tax rate.
How do I determine my gain or loss from the sale of fund shares?As an additional service to its shareholders, Putnam calculates the cost basis and the resulting gain or loss for each sale of fund shares during the year.
How does the Contingent Deferred Sales Charge (CDSC) affect my cost basis?Gain/loss calculations are made based on the total amount of the redemption. CDSC is treated as an addition to the basis of your shares redeemed.
What is a wash sale?A wash sale occurs when shares are redeemed at a loss and all or a portion of the shares are repurchased (including reinvested dividends) within a 61-day period, beginning 30 days before the sale and ending 30 days after the sale. All or a portion of any loss resulting from that sale is disallowed by the IRS and must be added into the average cost basis of the repurchase shares.
NOTE: Wash sale information is reported in Box 1g.
How does a return of capital affect my cost basis?Return of capital distributions reduce your cost basis. For example, if your Cost Basis is $1,000 and you received a return of capital of $100, your cost basis is reduced to $900.
Why is the cost basis information not available on my account?Generally, if the initial investment to your account was made prior to 1985 or the shares referenced were transferred from another account opened prior to 1985, then we are unable to provide your Cost Basis information.
Is there an example of the average cost basis?A shareholder makes three investments over time, purchasing:
150 shares on February 3, 1992, at $9 per share
100 shares on September 15, 1999, at $11.50 per share
250 shares on January 4, 2013, at $12 per share
The shareholder's investment amount is $5,500 with a balance of 500 shares.
The shareholder decides to sell 300 shares on October 15, 2013.
The price per share on October 15, 2010, was $15, giving the shareholder $4,500.
This information is being furnished to the Internal Revenue Service (IRS). If additional investments and/or adjustments are made to your account, an updated 2017 Form 5498-ESA will be mailed to you by April 30, 2018.
To view the tax filing information for a form section, click on the appropriate icon below.
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Are contributions to a Coverdell ESA deductible?
Contributions to a Coverdell ESA are not deductible; however, earnings accumulate tax free and qualified withdrawals are nontaxable.
How many Education Savings Accounts may a child have?There is no limit to the number of accounts a child can have. However, the total contributions per year to all accounts combined cannot exceed $2,000.
Can I also fund a Coverdell ESA if I currently have a 529 account?Yes, the law permits contributions to both a Coverdell ESA and 529 in the same year for the same beneficiary.
What are the benefits of opening a Coverdell ESA account?It gives you the opportunity to contribute up to $2,000 per child per year to save for primary or secondary education; it gives you the ability to make contributions until April 17, 2018, for tax year 2017; it gives you the ability to make tax-free withdrawals as long as the money is used for qualified educational expenses; and it gives you the ability to transfer the account to another family member without penalties or taxes. The $2,000 contribution limit may be reduced if certain income limitations are exceeded by the transferor.
