Know the Tax Filing Requirements
for Your Matured Giftrust®
We’d like to make you aware of your
tax filing requirements for your matured
Giftrust account. During the years your
All Cap Growth1 shares were held in the
trust, American Century Investments®, on
behalf of the trustee, filed any applicable
federal and state tax returns, and paid
any taxes due on the trust.
•• Schedule K-1 — This reports your
share of the trust’s income or loss,
deductions or credits for the year your
Giftrust matures. This information is
filed with the IRS and any applicable
states. We will send Schedule K-1
in March the year following your
Giftrust’s maturity.
Now that the trust term has ended and
the shares have been transferred to
your name, you are responsible for filing
the tax returns for your account. Any
reportable transactions are now included
on your individual tax form.
Please keep in mind that you will
need this form to correctly complete
your personal tax return for the prior
calendar year, the year in which your
Giftrust matured. You also should
keep it for your records. You will not
receive a Schedule K-1 in future years
because this is sent only the year after
the account matures.
To help you complete your tax filing the
year after your Giftrust matures, we will
provide you with the following documents.
•• Giftrust Transaction Summary —
This shows your transaction history
throughout the life of your Giftrust
account. Use it and the information
on this sheet to help calculate your
cost basis (how much was paid for
the shares). We only generate a
Transaction Summary the year after
your Giftrust matures. Clients whose
Giftrust matured in 2012 or later
can find a copy of their Transaction
Summary 2 by registering and logging
into their All Cap Growth account
with their new account number at
americancentury.com.
•• Form 1099-B — This reports the
redemption or exchange of your All
Cap Growth shares from your individual
account. On the form, your activity
will be split between covered and
non-covered shares, as well as longand short-term shares. We will send
Form 1099-B by the end of January
only if you redeemed shares during
the prior year.
What if my Giftrust matured,
but I did not redeem shares
that same year?
You will receive Schedule K-1 in March;
however, you will not receive Form
1099-B. The transfer of your shares from
the trust to your individual account was
not a taxable event.
Please refer to your Transaction Summary
to calculate your cost basis when you do
redeem shares from your account. You
may continue to use the First In, First
Out (FIFO) method, as described on the
back of this flier, when calculating your
cost basis for all future redemptions.
You must notify us if you would like to
continue to use the FIFO method as your
account will default to Average Cost after
maturity. Alternatively, you may use one
of the other IRS-approved methods for
your matured account. However, the initial
basis for your individual All Cap Growth
account will always be the final calculated
basis of your matured Giftrust account.
1
The Giftrust Fund name changed to All Cap Growth on September 30, 2012. The name of the trust remains Giftrust.
2
The summary document is available online for two years starting in January after the year of maturity.
Giftrusts that matured prior to 2011
If your Giftrust matured prior to 2011,
you should use the Specific Share ID
method to calculate your cost basis.
You should use the price from the
last distribution paid to the Giftrust
account. Please refer to your Giftrust
Transaction Summary and locate
that transaction. You can review a
description of Specific Share ID by
visiting americancentury.com and
searching cost basis reporting.
You should consider a fund’s
investment objectives, risks, and
charges and expenses carefully
before you invest. Each fund’s
prospectus, which can be obtained
at americancentury.com, contains
this and other information about
the fund, and should be read
carefully before investing.
Understanding past tax returns
While your shares were held in the trust,
we filed tax returns on your behalf when
required. To pay the tax-return fee and any
federal or state taxes due, we sold shares
purchased from the initial investment.
We then calculated the cost basis using
the FIFO method. This means the first
shares we redeemed were the first
shares purchased. The fee taken at
maturity, however, may be taken from
covered shares.
Giftrust matured, you will put this amount
and the Gross proceeds amount from
your Form 1099-B on IRS Form 8949.
To show you how to do this, we’ve
calculated the cost basis for a
hypothetical account using a Transaction
Summary and the steps outlined
below. Remember, the shares sold
are considered to be the first ones
purchased, so we use that share
(purchase) price instead of the share
price from the date of redemption.
Future tax returns
Calculating Cost Basis with
First In, First Out
For shares purchased before January 1,
2012, you will need to calculate the cost
basis using the Transaction Summary and
instructions below.
Generally, you will subtract the cost of the
shares sold from the cost of all shares
purchased to arrive at the cost basis. If
you redeemed all shares the year your
This basis carries forward to your
individual account and becomes the
starting point for determining the gain
or loss on any redemption of shares you
make in your individual account. You may
use FIFO method to determine the cost
basis for your shares now that the trust
is terminated. Or, you may use any other
cost basis method you choose.
•• For shares purchased after 1/1/12
(considered covered by the IRS),
we will calculate cost basis.
by visiting americancentury.com and
searching cost basis reporting.
Finding additional help
Because calculating cost basis can
be complex, you may want to contact
a tax advisor. For further information,
account, call an Investment
Total Shares
35.488
$1,010.00
$28.46
35.488
Please note that our representatives
0.682
15.00
22.01
36.170
0.858
18.88
22.01
37.028
are not licensed tax advisors and
13.279
317.64
23.92
50.307
20% Cap Gain
12/19/1997
28% LT Cap Gain .532
12/15/2000
LT Cap Gain
04/06/2001
Federal Tax Paid
1.479
22.00
14.87
48.828
04/06/2001
Giftrust Tax Return Fee
0.672
10.00
14.87
48.156
Dollar amount of purchase(s)
+ Cost of all reinvested distributions
$1,010.00
15.00
18.88
+317.64
$1,361.52
= Cost of all shares purchased
Total number of shares sold
xCost of shares at time of
first purchase
= Cost of shares sold
(1.479 + 0.672)
Cost of all shares purchased
- Cost of shares sold
= Cost basis
$1,361.52
61.22
$1,300.30
American Century Investment Services, Inc., Distributor ©2017 American Century Proprietary Holdings, Inc. All rights reserved.
CL-FLY-92575 1706
determine your cost basis.
Share
Price
12/19/1997
3. Determine the cost basis
by the IRS), use this flier to
Dollar
Amount
Purchase
2. Find the cost of the shares sold
1/1/12 (considered non-covered
Shares This
Transaction
Transaction
purchased
•• For shares purchased before
For questions about your Giftrust
09/29/1997
1. Determine the cost of all shares
January 1, 2012, for mutual funds.
see IRS Publication 550.
Date
8.5783
New cost basis rules went into effect
You can learn more about these rules
Hypothetical Example: First In, First Out (FIFO) Method
.4227
Learn more about cost basis
x $28.46
= $61.22
Consultant at 1-800-345-2021.
cannot answer tax questions.
IRS Circular 230 Disclosure:
American Century Companies, Inc.
and its affiliates do not provide tax
advice. Accordingly, any discussion
of U.S. tax matters contained herein
(including any attachments) is not
intended or written to be used, and
cannot be used, in connection with
the promotion, marketing or recommendation by anyone unaffiliated with
American Century Companies, Inc.
of any of the matters addressed herein
or for the purpose of avoiding U.S.
tax-related penalties.