Financial Insights

2016 Tax Reporting Information

Investment companies sometimes re-characterize income after year-end, which may result in your custodian having to issue revised Forms 1099.  For this reason, if you plan on filing by this year’s April 18 deadline, your tax preparer may recommend that you wait until late March to ensure that you have the complete data.

Capital Gains and Losses: These are reported on the Form 1099 from your custodian.

Management Fees: Forms 1099 from the custodian will include management fees paid to Advisors Capital Management from your taxable accounts, which may be deductible on your tax return. If your management fees were paid from more than one taxable account, this information will be shown on each of the 1099s from which fees were paid.

If any of your management fees were debited from tax-deferred accounts such as an IRA, they will not appear on the Forms 1099; such fees are not deductible.

Other Expenses:

If applicable, Forms 1099 will also include other expenses paid out of your taxable accounts such as custodian fees and margin interest, which may also be deductible.

If applicable, Forms 1099 also report foreign taxes paid out of your taxable account during the year together with disclosure of gross foreign income.

Schedule K-1:  Investors in ACM’s Income with Growth Strategy may have held investments in limited partnerships. Each investor’s share of the partnership’s income, deductions and credits, etc. are reported on Schedule K-1 (Form 1065), which are distributed separately from Form 1099.  For partnerships with a December, 31 fiscal year, these tax reporting forms are due by March 15.  Investors in Income with Growth should schedule appointments with their tax preparer later in March to allow for the distribution of K-1s.

We hope that you find the above information useful in the preparation of your taxes.  Please contact us with any questions.

All information is provided for guidance and information purposes only.  The information contained herein has been compiled from sources deemed reliable and it is accurate to the best of our knowledge and belief. Advisors Capital Management is not an accounting firm and this information should not be interpreted as accounting or tax advice.  Please contact your tax preparer or tax adviser for additional information.

The foregoing content reflects the opinions of Advisors Capital Management, LLC and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.


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