SAMPLE TAX ELECTION & VERIFICATION FORM FOR CAPITAL TREATMENT
The following election and verification forms may be used by you if you are a noninstitutional customer purchasing Euro Currency TRAKRS and you wish to make an election under Section 988(a)(1)(B) to treat gain or loss with respect to Euro Currency TRAKRS as capital gain or loss. You may make such election to obtain capital treatment only if the Euro Currency TRAKRS contract is a capital asset in your hands, is not part of a tax straddle, and does not become part of a tax straddle in the future. To be effective, this election form must be completed on the date you enter into a Euro Currency TRAKRS transaction and must be kept as part of your books and records. You must complete a separate form for each Euro Currency TRAKRS transaction into which you enter. The election also must be verified by attaching the verification statement below to your federal income tax return. The verification form must list all transactions, TRAKRS or otherwise entered into by you during the taxable year, that are subject to a Section 988(a)(1)(B) election (and have not been independently verified) in order to be effective. The attached forms are merely sample forms, provided to you for your convenience. It is not necessary to use these forms to make an effective Section 988(a)(1)(B) election provided that you otherwise comply with Treasury regulations governing the procedures for making such an election. Further, these forms may not be appropriate for you to use depending on your particular tax situation. You should carefully review the sections entitled “Federal Income Tax Considerations” and “Supplemental Federal Income Tax Considerations” contained in the TRAKRS Disclosure Document and the Euro Currency TRAKRS Disclosure Document Supplement and you should consult your own tax counsel regarding the decision to make a Section 988(a)(1)(B) election, the steps necessary to implement such an election, and whether these forms are appropriate for you to use based on your particular tax situation.
Capital Gain/Loss Election for Euro Currency TRAKRS CODE SECTION 988(a)(1)(B) and TREAS. REG. SECTION 1.988-3(b)(3).
For United States federal income tax purposes, I hereby certify that on ___ /___ /___, at ____: ____ a.m./p.m., I entered into the Euro Currency TRAKRS transaction specified in account ___________. I hereby elect, pursuant to Section 998(a)(1)(B) of the Internal Revenue Code and Treas. Reg. Section 1.988-3(b)(3), to treat gain or loss on the transaction specified in the preceding sentence as capital gain or loss.
Signature: Date of Transaction:
_________________ _________________
Verification of Capital Gain/Loss Election CODE SECTION 988(a)(1)(B) and TREAS. REG. SECTION 1.988-3(b)(4) For United States federal income tax purposes, the following statement attached to my income tax return constitutes verification, within the meaning of Treas. Reg. Section 1.988-3(b)(4), of the elections that have been made pursuant to Code Section 988(a)(1)(B) and Treas. Reg. Section 1.9883(b)(3). i.) Each transaction listed and described below entered into during this taxable year is the subject of a Section 988(a)(1)(B) election. Each such transaction was entered into on the date so specified; List Transaction Description and Date Entered: 1. 2. 3. ii.) The Section 988(a)(1)(B) election made with respect to each of the transactions listed in (i) was made before the close of the date the transaction was entered into; The transactions listed and described below are those transactions for which a Section 988(a)(1)(B) election was in effect and have expired or been sold or exchanged during the taxable year. Each transaction listed expired or was sold or exchanged on the date so specified; List Transaction Description and Date of Expiration or Sale/Exchange (or state NONE if not applicable): 1. 2. 3. iv.) None of the transactions listed in (i) were ever part of a straddle as defined in Section 1092; and All transactions subject to a Section 988(a)(1)(B) election entered into by me during the taxable year are listed in (i) and thereby included on this statement attached to my income tax return.
iii.)
v.)