EFTA Document EFTA01455362

Dray iv w". irt,40.m.0 114...titne Bra Setertipt. fat PO By 1776. Elsatenore NO 2120.3 Schedule of Realized Gains and Losses Current Period (continued) Disposition Ace., s; 21 Disposiha- Date Date Transaction Desaiption Total Short Term and Long Term Statement Period: 08:01:2014 - 08/31!2014 Realized Gain/ Low Quantity Cost Basis Proceeds Disallowance $7,583,019.53 $4,953,186.26 42,609,833.27 • Noncovered under the cost basis rules as defined below. Securities acquired before 2011 are generally not subject to the new cost basis reporting rules set forth in the Internal Revenue Code of 1986, as amended (IRC') (incorporating amendments enacted by P.L110-343, the Emergency Economic Stabilization Act of 2008) and are, therefore, considered "noncovered," under the new cost basis reporting rules, and marked or denoted as such. All other securities in this section are securities which are 'covered' under the new cost basis reporting rules. Securities which are "covered" under the new cost basis reporting rules are defined as securities which have been acquired on or after their 'applicable date(s)' at which they are subject to the cost basis reporting rules and the adjusted basis will be reported to the IRS on form 1099-8 for the applicable tax year in which the security is disposed. Reporting requirements generally will be phased in over a three-year period, as follows: • Stock in a corporation acquired on or after January 1, 2011 • Mutual funds and dividend reinvestment plan (DRP) shares acquied on or after January 1, 2012 • Other securities, principally debt securities and options, acquired on or after January 1, 2014, or later, as determined by the Secretary of the Treasury. This Schedule may not reflect al cost basis adjustments necessary for tax reporting purposes, especially for noncovered securities. Adjustments to cost basis may have been made for prior income received and subsequently reclassified by the issuer as a return of capital. In addition, corporate action events may require adjustments to your original cost basis. Return of capital information and cost basis information, as it relates to corporate actions, has been obtained from sources we believe to be reliable. Adjustments to cost basis can be made after year-end, in particular, for return of capital adjustments, but may also include adjustments for corporate action events. Therefore there may be differences in cost basis reflected on your monthly client brokerage statement at year end versus any subsequent reports, including your 1099-B or online displays you may have available to you. When you report your cost basis on your tax return, it should be verified using all of your own records. In particular, there may be other adjustments which you need to make, but are not required to be made by Pershing as it relates to H.R. 1424. You should consult with your tax advisor in order to properly report your gain or loss for tax purposes. Pershing shall not be responsible for and makes no representations or warranties with respect to the accuracy of any information that you report to the IRS or other taxing authorities. and, accordingly. disclaims any and aN liability that may arise with respect to your use and reliance on the information provided herein for such reporting. Cost Basis on fixed income securities is adjusted for amortization, accretion or principal paydowns. The method of calculation is based upon the type of lured income security and certain attributes, obtained from sources believed to be reliable. In the event, one or more of these attributes is changed, there may be a temporary incorrect adjusted cost basis reflected until the portfolio system is amended to reflect this change. These calculations win not be performed under certain circumstances, including those involving continuously callable bonds, foreign bonds, variable rates, bonds in default, index-linked bonds, bonds sold short or bonds that have a negative yield. This information is meant as a general guide and you should consult your tax advisor in the preparation of your tax retums. 13 The cost basis of this security has been provided to us by the delivering firm or transfening agent and Pershing makes no representation as to the accuracy of this information. Please refer to the Your Account Information Section in your brokerage account statement for your accounts existing tax-lot disposition method. The disposition method is the method which you have selected to use in the disposal of each tax lot of the securities held in your account. If you do not select a method, your account will be defaulted to First In, First Out (FIFO). Your accounts selected tax lot method will be used to detemtine the cost basis for calculating gain andror loss, unless another method was selected at the time of the security disposal, and this may be reported on the IRS Form 1099-B. I t, ,,, A;1. WY; Account Number: — SOLThERN FINANCIAL LLC ;Wed EV.Illent Go paperless wne.,..zoo, DALOAR RATED COP.WIUNICATK,16 Con.r.ter CPatitiCt Page 13 0120 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0114083 CONFIDENTIAL SDNY_GM_00260267 EFTA01455362