FREQUENTLY ASKED QUESTIONS – IRS FORM 1099-B - Capital Gains and Cost Basis Reporting

Sep 19, 2026

Frequently Asked Questions explains how IRS Form 1099-B details a broker or transfer agent’s reporting of sale information to both investors and the IRS. It clarifies why cost basis must be reported, distinguishing covered shares acquired on or after January 1, 2012 from noncovered shares acquired before that date. The FAQ also covers transfers of covered shares between brokers, how to use Form 8949 to report capital gains and losses, and limits on the Fund providing tax advice.

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Frequently Asked Questions – IRS Form 1099-B

Reporting of 1099-B information to the IRS

Cost basis: covered vs noncovered shares

Reporting capital gains and losses using Form 8949

Help available vs tax advice limits

FREQUENTLY ASKED QUESTIONS – IRS FORM 1099-B | | Question | Answer | | --- | --- | --- | | 1. | Does information on my 1099-B tax form get reported to the IRS? | Yes, Computershare Trust Company, N.A.
(“Computershare”), the Fund’s transfer agent, or your broker of record will send both you and the IRS Form 1099-B that reports the details of your sale. This form helps you to report capital gains and losses on your tax return. | | 2. | Why do I have to report cost basis on my tax return? | Shareholders have always been required to report cost basis on their individual tax returns. However, as part of the Emergency Economic Stabilization Act of 2008, the IRS requires closed-end fund companies to provide cost basis information to both investors and the IRS on the sale of fund shares acquired after January 1, 2012 – called “covered” shares. | | 3. | What are “covered” shares? | Covered shares are shares that were acquired on or after January 1, 2012, including those purchased through the dividend reinvestment plan. Transfer agents are required by the IRS to report cost basis to individuals and the IRS. | | 4. | What are “noncovered” shares? | Noncovered shares are shares that were acquired prior to January 1, 2012, including those purchased through the dividend reinvestment plan. Transfer agents are not required to report cost basis to the IRS, however, the shareholder is still responsible for calculating cost basis for their individual tax returns. | | 5. | If I transfer covered shares from AST to a broker, will AST furnish my broker with cost basis information for the covered shares? | Yes, for share transfers to brokers, Computershare will be required to furnish your broker with basis information on covered shares. | | 6. | How do I report my capital gains and losses to the IRS? | Form 8949 is used to report capital gains and losses that may have resulted from the sale of fund shares in 2012. Information provided on your 1099-B is entered in the appropriate areas on Form 8949. Part I of the form is for short-term gains and losses, and Part II is for longterm gains and losses. Each sale must be reported separately. | | 7. | Does my closed-end fund have a tax adviser or anyone who can help me fill out my return? | The transfer agent or your broker will be happy to help you with questions and information about your accounts; however, the Fund cannot provide tax advice. For assistance in filling out your return, you should contact your tax adviser. | 10 S. Wacker Drive • Floor 19 • Chicago, IL 60606

FAQs

Does information on my 1099-B get reported to the IRS?

Yes. Your broker of record or the transfer agent sends both you and the IRS Form 1099-B that reports the details of your sale.

Why do I have to report cost basis on my tax return?

Shareholders have long been required to report cost basis, and the IRS requires closed-end fund companies to provide cost basis for covered shares acquired after January 1, 2012.

How do I report capital gains and losses to the IRS?

Use Form 8949. Enter information from your 1099-B into the appropriate areas, reporting each sale separately; Part I covers short-term and Part II covers long-term gains and losses.

Sep 19, 2026

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