| Tax Reporting Information |
| 2012 IMPORTANT TAX REPORTING INFORMATION |
This page contains important tax information specific to your HighMark Funds. Please consult your tax advisor and refer to this newsletter when preparing your 2012 tax return. We believe we have provided the detail necessary to complete your 2012 tax returns. However, if you require further information, please call our Investor Services Representatives toll free at 1-800-433-6884.
How to read your 2012 1099-B |
| Important Tax Information |
| On December 17, 2010, the President signed into law the 2010 Tax Relief Act ("Act"). The Act extended the 15 percent maximum tax rate on long-term capital gains and qualified dividend income through 2012. The Act also requires funds to report interest paid on tax-exempt bonds in the same manner, but on a different tax form, as interest paid on taxable bonds. Please see "2012 Important Tax Exempt Fund Information" on this page for specific instructions. |
| Qualified Dividends Income |
| Qualified dividend income ("QDI") is taxed at the lower long-term capital gain rates through 2012. The mutual fund may pass through any QDI it receives from stocks in the fund's portfolio. QDI is reported to you on Form 1099-DIV, Box 1b. The QDI amount in Box 1b will only apply to you if you have held a fund for more than 60 days during the 121-day period beginning 60 days before the date of the distribution. |
| Dividends Received Deduction - Corporate Shareholders only |
| Corporate shareholders may take advantage of the 70% dividends received deduction ("DRD") for dividends paid by certain funds that hold equity securities. The following table summarizes the portion of ordinary dividends which qualifies as DRD. The DRD percentage for funds not listed is zero. |
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| Fund Name |
DRD % |
| Balanced Fund .............................................. |
65.94% |
| Cognitive Value Fund ................................... |
100.00% |
| Equity Income Fund ..................................... |
100.00% |
| Large Cap Core Equity Fund ...................... |
100.00% |
| Large Cap Growth Fund .............................. |
100.00% |
| Large Cap Value Fund ................................. |
100.00% |
|
| NYSE Arca Tech 100 Index Fund.......... |
100.00% |
| Small Cap Core Fund ............................. |
100.00% |
| Value .......................................................... |
100.00% |
| Tactical Capital Growth Alloc Fund ..... |
60.45% |
Tactical Growth & Income Alloc Fund
|
32.83% |
| |
| Foreign Tax Credit and Foreign Source Income |
The International Opportunities Fund qualified for and elected to pass through foreign tax credits to its shareholders. Accordingly, you are entitled to claim a foreign tax credit or take an itemized deduction on your federal income tax return for your share of the taxes indicated in box 6 of your 2012 Form 1099-DIV.
To be eligible to claim a foreign tax credit, you must have held your shares for more than 15 days within a 31day period beginning 15 days before the distribution date. The maximum credit a taxpayer may use is generally limited to the percentage of U.S. tax that equals the taxpayer's foreign source taxable income as a percentage of worldwide taxable income.
If your total creditable foreign taxes paid are not more than $300 ($600 if married filing jointly) and you meet all of the other requirements, you may be eligible to elect to claim a foreign tax credit, without regard to the foreign limitation and without filing Form 1116.
If your total creditable foreign taxes paid are more than $300 ($600 if married filing jointly), you will be required to compute the foreign limitation and complete Form 1116.
To calculate the foreign tax credit limitation, you will need to know your foreign source income and foreign qualifying dividend income from all sources. Please use the form below to obtain your fund's pertinent information and aggregate it with similar information from other investments you own. If you are required to report foreign tax information by country on Form 1116, please contact an Investor Services Representative. | |
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| United States Government Interest |
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Please check with your state or local tax office or your tax advisor to determine whether your state allows you to exclude some or all of the income you earn from mutual funds that invest in direct U.S. government obligations. If so, multiply the income percentage listed in the chart below by the amount in box 1a of your Form 1099-DIV to determine the amount of exempt interest. The U.S. government percentage for funds not listed is zero.
|
|
| Fund Name |
%deductible |
| Balanced Fund (1) ............................................ |
0.09% |
| Bond Fund (1)..................................................... |
4.32% |
|
Short Term Bond Fund (1)............................... |
0.16% |
|
100% U.S. Treasury Money Market Fund ... |
100.00% |
| Diversified Money Market Fund (1) .............. |
0.66% |
|
| Treasury Plus Money Market Fund (1) .......... |
12.15% |
| U.S.Government Money Market Fund (1) ...... |
16.83% |
| Tactical Capital Growth Alloc Fund (1) .......... |
0.01% |
| Tactical Growth & Income Alloc Fund (1) ..... |
0.39% |
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1 Due to certain statutory limitations, shareholders of these funds that are residents of California, Connecticut or New York are not permitted to exclude the portion of ordinary income that represents direct U.S. government obligations from their state income taxes. Please consult your tax advisor. |
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