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Delaware Investments offers information in this section to help you better understand the year-end tax reports that we provide to shareholders. Your tax liability for the Delaware Investments® mutual funds that you owned in 2009 is derived primarily from income and capital gains distributions made by the funds, as well as personal gains or losses resulting from the sale or exchange of fund shares.
Here, you can find valuable information on the following topics:
Distributions
Capital gains
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Details on reporting capital gains — Including instructions on filling in forms for both short- and long-term capital gains
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Determining cost basis — Explanation of "cost basis" and how to calculate it to determine whether you have a capital gain or loss on shares you sold or exchanged
Dividends
A note about ordinary and qualified dividends, including information on tax forms and tax rates.
Tax forms
A list of forms you may receive from Delaware Investments, including how they are used and when they are mailed.
Important state tax information
View the percentage of interest income earned on municipal obligations, on a state-by-state basis, for the following funds:
For the calendar year 2009, income dividends received from investments in all classes of the Delaware Investments national and state-specific tax-free funds were generally exempt from federal income tax. However, these dividends may or may not be exempt from state or local taxes. Please contact your tax advisor for details.
In most states, income from U.S. Treasury securities and other U.S. government obligations is exempt from state income taxes. Please contact your tax advisor for details. The link above lists Delaware Investments funds and the percentage of ordinary dividends they derived from U.S. government obligations.
Alternative minimum tax
A percentage of the income paid to shareholders of the Delaware Investments national tax-free funds and state-specific tax-free funds may be subject to the alternative minimum tax (AMT), which applies to some investors. Your tax advisor can provide more information on the AMT and whether this tax applies to you.
View the percentage of income subject to the AMT for:
Roth IRAs
Recharacterization is the process by which investors "undo" a Roth IRA and transfer their money back into a traditional IRA account. Conversion is changing from a traditional IRA to a Roth IRA. See this section for the tax implications.
Foreign tax — for shareholders of international funds
Shareholders of certain international funds may be able to reduce their 2009 income taxes in connection with foreign income tax paid by those funds.
Deposit your tax refund directly into your Delaware Investments account
If you expect a refund this year and would like to automatically invest it in your Delaware Investments account, learn how with our helpful instructions.
Import your 1099 tax information
For the 2009 tax season, Delaware Investments is working with Intuit, maker of TurboTax® software, and H&R Block, which offers H&R Block At Home® products, to offer you an easy way to import your IRS Form 1099 tax data and potentially finish your taxes faster and more accurately.
Your tax information
Account Access gives you full access to your account information, including tax information. To sign up for this feature, call our Shareholder Service Center at 800 523-1918.
For more information
Internal Revenue Service
The IRS has several publications and Web tools available free of charge to help taxpayers complete their tax returns. These publications and tools, including IRS Publication 564, "Mutual Fund Distributions," can be obtained by visiting the IRS Web site at www.irs.gov. Publications can also be obtained by calling the IRS at 800 TAX-1040 (800 829-1040).
Delaware Investments
Request duplicate 1099 tax forms by calling our Shareholder Service Center at 800 523-1918, weekdays from 8 a.m. to 7 p.m. Eastern time.
Intuit and TurboTax are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. H&R Block At Home is a registered trademark of H&R Block, Inc. in the United States and other countries.
The information contained in the Tax Center is not intended to be legal or tax advice. Please consult a tax advisor if you need assistance preparing your tax return.
Information may be abridged and therefore incomplete. Any discussion pertaining to taxes in this communication (including attachments) may be part of the promotion or marketing of a product. As provided for in government regulations, advice (if any) related to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.
Investors should consider the investment objectives, risks and charges and expenses of a Fund carefully before investing. Each Fund's prospectus contains this and other important information about the Fund. Please request a prospectus by calling 800 523-1918 or by visiting the prospectuses & shareholder reports section of www.delawareinvestments.com. Read it carefully before investing or sending money.
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