Dear Friends and Family,

It’s back to school time, for our clients too! Below are our next seminar dates and topics, in both the Bethesda and Issaquah locations. We hope you can join us and as always, your guests are welcome. Please contact us to reserve your spot for the following:

Important change to Fidelity Investments Cost Basis and Gain/Loss Reporting:
The Emergency Economic Stabilization Act of 2008 requires custodians to report “adjusted basis” for tax purposes on IRS Form 1099-B. Covered securities are defined as:

• Stock in a corporation purchased on or after January 1, 2011.
• Registered Investment Companies, including mutual funds, purchased on or after January 1, 2012.
• All other securities defined by the Treasury Department purchased on or after January 1, 2013.

On tax reporting: the 2008 Worker, Retiree, and Employer Recovery Act waives any RMD for 2009. You are not required to withdraw any amount this year. We recommend you contact your tax advisor. We are always here to answer questions.

Hot Topics: New home sales surged 9.6% in July. Mortgage loan applications rose 7.5% at the end of August. Buyers are taking advantage of the federal $8,000 first-time homebuyer credit, which requires closings before November 30.

A sign of economic recovery: Factory output is growing for the first time since early last year.

Parting Quote: “You cannot help the poor by destroying the rich…You cannot help people permanently by doing for them what they could and should do for themselves.” – Abraham Lincoln

Sincerely,

Katz Family Financial