Form 1099-B is used to report the gross proceeds, less a contingent deferred sales charge (CDSC) fees and redemption fees, received from sales of fund shares in non-retirement accounts during the current year. You should report these transactions on Form 1040, Schedule D. Form 1099-B reports the date of sale or exchange, gross proceeds, federal income tax withheld (if any) and number of shares exchanged.

Whenever you sell, redeem or exchange shares of your Franklin Templeton fund, you generally have a taxable transaction that must be reported to the IRS. These transactions will result in short- or long-term capital gains or losses, both of which must be reported on your federal income tax return (please see Cost Basis Statement section for more information about reporting gains and losses).

Sample of Form 1099-B