VOID CORRECTED

2

OMB No. 1545-0145

Notice to Shareholder of Undistributed

Long-Term Capital Gains

1a

1d

1b

Copy A

1c Attach to

Form 1120-RIC

or Form 1120-REIT

For Instructions

and Paperwork

Reduction Act

Notice, see back of

Copies A and D.

$

Form 2439 Cat. No. 11858E Department of the Treasury - Internal Revenue Service

Form 2439

1997

Regulated investment company or real estate investment trust’s name,

address, and ZIP code

Regulated investment company or real estate investment trust’s

identification number

Shareholder’s identification number

Shareholder’s name, address, and ZIP code

Total undistributed long-term capital gains

28% rate gain

Section 1202 gain

Tax paid by the regulated investment company or real estate

investment trust on the box 1a gains

Unrecaptured sec. 1250 gain

$

$

$

$

For calendar year 1997, or other tax year of the

regulated investment company or the

real estate investment trust

beginning , 1997, and

ending , 19
Changes To Note

● The Taxpayer Relief Act of 1997 (the “Act”) provides that for tax years

beginning after August 5, 1997, a real estate investment trust (REIT) may

elect to retain and pay tax on undistributed capital gains just as a

regulated investment company (RIC) is permitted to do.

● The Act changed the capital gains rates for individuals. As a result,

RICs and REITs must provide shareholders additional information

necessary to complete Schedule D (Form 1040). Box 1b. 28% rate gain. Enter the shareholder’s allocable portion of the

amount from box 1a that has been designated as 28% rate gain. For

details, see Notice 97-64, 1997-47 I.R.B. 7.

Box 1c. Unrecaptured section 1250 gain. Enter the shareholder’s

allocable portion of the amount from box 1a that has been designated as

unrecaptured section 1250 gain. See Notice 97-64.

Instructions for Regulated Investment

Company and Real Estate Investment Trust

RIC or REIT’s identification number and name and address. Type or

print the EIN and the name and address (including ZIP code) of the RIC

or REIT as shown on Form 2438, Undistributed Capital Gains Tax

Section references are to the Internal Revenue Code. Return.

Box 1a. Enter the amount of undistributed capital gains from line 11,

Form 2438, allocable to the shareholder.

● Complete Copies A, B, C and D for each shareholder for whom the

RIC or REIT paid tax on undistributed capital gains.

● Furnish Copies B and C of Form 2439 to the shareholder by the 60th

day after the end of the RIC’s or the REIT’s tax year.

Shareholder’s identification number and name and address. Type or

print the shareholder’s SSN, name, and address (including ZIP code). If

the shareholder is other than an individual, enter the EIN. If a shareholder

is an IRA, enter the identification number of the IRA trust. Do not enter

the SSN of the person for whom the IRA is maintained.

● Attach Copy A of all Forms 2439 to Form 1120-RIC or Form

1120-REIT when it is filed at the appropriate IRS service center.

Note: If the shareholder is an individual retirement arrangement (IRA),

send Copies B and C to the trustee or custodian of the IRA. Do not send

copies to the owner of the IRA.

● Retain Copy D for your records.

(Continued on the back of Copy D.)

Reporting Information

● Copy D is new and is provided to you to keep for your records.
VOID CORRECTED

2

OMB No. 1545-0145

Notice to Shareholder of Undistributed

Long-Term Capital Gains

1a

1d

1b

Copy B

1c Attach to the

shareholder’s

income tax return

for the tax year

that includes the

last day of the RIC

or REIT’s tax year.

$

Form 2439 Department of the Treasury - Internal Revenue Service

Form 2439

1997

Regulated investment company or real estate investment trust’s name,

address, and ZIP code

Regulated investment company or real estate investment trust’s

identification number

Shareholder’s identification number

Shareholder’s name, address, and ZIP code

Total undistributed long-term capital gains

Tax paid by the regulated investment company or real estate

investment trust on the box 1a gains

$

$

$

$

28% rate gain

Section 1202 gain

Unrecaptured sec. 1250 gain

For calendar year 1997, or other tax year of the

regulated investment company or the

real estate investment trust

beginning , 1997, and

ending , 19
● Corporations and Foreign Corporations. See line 32f of Form

1120 (line 28f of Form 1120-A) or line 6f of Form 1120-F and

the related instructions. All other corporations report this amount

on the line designated as “Credit for tax paid on undistributed

capital gains.”

● S Corporations and Partnerships. See the line 25 instructions for

Schedule K-1 of Form 1065 or the line 23 instructions for Schedule K-1

of Form 1120S.

Section references are to the Internal Revenue Code.

Box 1a. Shareholders that are individuals report this amount on

Schedule D (Form 1040), Part II, line 11, column (f). Shareholders that are

corporations report this amount on Schedule D (Form 1120), Part II, line

6. For more details, see Pub. 564, Mutual Fund Distributions.

Box 2. This box contains the tax paid by the RIC or REIT on the

undistributed long-term capital gains shown in box 1a. You can get a

refund or credit for this tax as follows:

● Individuals, Nonresident Aliens, and Estates and Trusts. See line 59

of Form 1040, line 56 of Form 1040NR, or line 25f of Form 1041, and the

related instructions.

Changes To Note

● The Taxpayer Relief Act of 1997 (the “Act”) provides that for tax years

beginning after August 5, 1997, a real estate investment trust (REIT) may

you a Form 2439 with amounts you must report on your tax return. See

the instructions below for where to report the amounts shown on Form

2439.

● The Act has changed the capital gains rates for individuals. As a result,

RICs and REITs must provide shareholders additional information

necessary to complete Schedule D (Form 1040). As a shareholder of the

RIC or REIT, you are required to report the undistributed long-term

capital gain reported to you on Form 2439 on your tax return. This

income is not reported to you on Form 1099-DIV, Dividends and

Distributions.

(g) of Schedule D (Form 1040). See the instructions for Schedule D (Form

1040) for the definition of 28% rate gain.

Box 1c. Unrecaptured section 1250 gain. Use the amount in box 1c

when figuring the amount to enter on line 25, Schedule D (Form 1040).

See the instructions for Schedule D (Form 1040) for the definition of

unrecaptured section 1250 gain.

(Continued on the back of Copy C.)

Reporting Information

The instructions for boxes 1a, 1b, and 1c show how to report amounts

on the 1997 Schedule D (Form 1040). See the 1998 instructions for

Schedule D for how to report amounts in boxes 1a through 1d if this

form is from a 1997-1998 fiscal year RIC or REIT.

Box 1d. Section 1202 gain. See the 1998 Schedule D (Form 1040) for

information on where to report any gain in box 1d. Also, see the 1998

instructions for Schedule D (Form 1040) for the definition of section 1202 gain.

Instructions for Shareholder

elect to retain and pay tax on undistributed capital gains. The REIT sends
VOID CORRECTED

2

OMB No. 1545-0145

Notice to Shareholder of Undistributed

Long-Term Capital Gains

1a

1d

1b

Copy C

1c

For shareholder’s

records.

$

Form 2439 Department of the Treasury - Internal Revenue Service

Form 2439

1997

Regulated investment company or real estate investment trust’s name,

address, and ZIP code

Regulated investment company or real estate investment trust’s

identification number

Shareholder’s identification number

Shareholder’s name, address, and ZIP code

Total undistributed long-term capital gains

Tax paid by the regulated investment company or real estate

investment trust on the box 1a gains

$

$

$

$

28% rate gain

Section 1202 gain

Unrecaptured sec. 1250 gain

For calendar year 1997, or other tax year of the

regulated investment company or the

real estate investment trust

beginning , 1997, and

ending , 19
1. Complete Copies A, B, C, and D of Form 2439 for each owner. The

total undistributed long-term capital gains entered in box 1a, the amounts

entered in boxes 1b, 1c, and 1d, and the tax shown in box 2 on the

Form 2439 for each owner must agree with the amounts on Copy B that

you received from the RIC or REIT.

2. Enter your name as “Nominee” and your address in the block for the

shareholder’s name and address, and the RIC’s or REIT’s name and

address, in the block for the RIC’s or REIT’s name and address.

3. Write “Nominee” in the upper right corner of the Copy B you

received from the RIC or REIT and attach the Copy A you complete to it.

4. File the Copy B you received (with an attached Copy A) with the

Internal Revenue Service Center where you file your income tax return. (If

you are a resident of a foreign country, file with the Internal Revenue

Service Center, Philadelphia, PA 19255.)

Note: A trustee or custodian of an IRA should not send a copy of Form

2439 to the owner of the IRA.

● Nominees. If you are not the actual owner of the shares for which this

form is issued, you must:

5. Give the actual owner Copies B and C of the forms you complete.

A nominee has 90 days after the close of the RIC’s or REIT’s tax year

to complete items 1 through 5 above. However, a nominee acting as a

custodian of a unit investment trust described in section 851(f)(1) has 70

days. A nominee who is a resident of a foreign country has 150 days.

1. By organizations exempt from tax under section 501(a) filing Form

990-T to claim their refund of income tax paid on undistributed long-term

capital gains, or

2. By trustees for individual retirement arrangements (IRAs) described

in section 408 (including accounts described in section 408(h)) filing a

single composite Form 990-T to claim the refund referred to above.

6. Keep Copy D for yourself.

Instructions for Shareholder ( Continued)

● Exempt Organizations and Certain Trustees. See the instructions for

Form 990-T when Form 990-T is filed in either of the following situations.
VOID CORRECTED

2

OMB No. 1545-0145

Notice to Shareholder of Undistributed

Long-Term Capital Gains

1a

1d

1b Copy D 1c

$

Form 2439 Department of the Treasury - Internal Revenue Service

Form 2439

1997

Regulated investment company or real estate investment trust’s name,

address, and ZIP code

Regulated investment company or real estate investment trust’s

identification number

Shareholder’s identification number

Shareholder’s name, address, and ZIP code

Total undistributed long-term capital gains

Tax paid by the regulated investment company or real estate

investment trust on the box 1a gains

$

$

$

$ For records of the

regulated

investment

company or the

real estate

investment trust.

28% rate gain

Section 1202 gain

Unrecaptured sec. 1250 gain

For calendar year 1997, or other tax year of the

regulated investment company or the

real estate investment trust

beginning , 1997, and

ending , 19
Box 1d. Section 1202 gain. The section 1202 gain is the portion of box

1a that is attributable to the sale or exchange of certain small business

stock in a qualified corporation after August 11, 1998. It affects only a

1997-1998 fiscal year RIC or REIT whose tax year ends after August 11,

1998. Enter in box 1d the portion of the amount in box 1a that has been

designated as section 1202 gain. In addition, attach a statement that

reports separately for each designated section 1202 gain: the amount of

the section 1202 gain, the name of the corporation that issued the stock,

the date (or dates) on which the RIC or REIT acquired the stock that was

sold, and the shareholder’s portion of the RIC or REIT’s basis in the

stock.

Preparing and sending

the form to the IRS 21 min.

If you have comments concerning the accuracy of these time

estimates or suggestions for making this form simpler, we would be

happy to hear from you. You can write to the IRS at the address listed in

the Instructions for Form 1120-RIC or Form 1120-REIT.

Paperwork Reduction Act Notice. We ask for the information on this

form to carry out the Internal Revenue laws of the United States. You are

required to give us the information. We need it to ensure that you are

complying with these laws and to allow us to figure and collect the right

amount of tax.

Box 2. Enter the tax paid on the amount from box 1a of Form 2439.

The time needed to complete and file this form will vary depending on

individual circumstances. The estimated average time is:

Recordkeeping 2 hr., 52 min.

Learning about the

law or the form 18 min.

You are not required to provide the information requested on a form

that is subject to the Paperwork Reduction Act unless the form displays a

valid OMB control number. Books or records relating to a form or its

instructions must be retained as long as their contents may become

material in the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by section

6103.

Instructions for Regulated Investment

Company and Real Estate Investment Trust

( Continued)