FPA FUNDS
NOTICE ACCOMPANYING IRS FORM 1099 - 2004 Tax
Year
The Form 1099 shows the federal tax status of dividends
and distributions paid to you which are taxable in 2004. Below is additional
information for each Fund.
Ordinary Income:
Income derived from U.S. Treasury Securities can be determined
by multiplying the amount shown in box #1a of your Form 1099 by the percentage
in Column (1) below.
Corporate shareholders can determine the amount which qualifies
for the 70% corporate dividends received deduction by multiplying the amount
shown in box #1a of your Form 1099 by the percentage in Column (2) below.
|
|
(1)
Income from U.S. Treasury Securities
|
(2)
Corporate Dividend
Deduction
|
FPA CRESCENT FUND
|
8.6%
|
46.5%
|
FPA NEW INCOME, INC.
|
28.7%
|
--
|
FPA Capital Fund, Inc., FPA Paramount Fund, Inc., and
FPA Perennial Fund, Inc. did not pay any dividends from ordinary income in 2004.
Long-term Capital Gains:
Certain states permit different tax rates for capital gain
distributions based on the length of time the security is held. Residents of
these states can determine the capital gain to include in each applicable
category by multiplying the amount shown in box #2a of Form 1099 by the
percentage in the respective time period for the appropriate Fund.
|
|
1-2 yrs.
|
2-3 yrs.
|
3-4 yrs.
|
4-5 yrs.
|
5-6 yrs.
|
6+yrs.
|
FPA CAPITAL FUND, INC.
|
21.3%
|
20.5%
|
33.1%
|
23.1%
|
--
|
2.0%
|
FPA CRESCENT FUND
|
26.5%
|
47.6%
|
24.2%
|
--
|
--
|
1.7%
|
FPA PERENNIAL FUND, INC.
|
10.8%
|
13.2%
|
--
|
--
|
56.9%
|
19.1%
|
FPA New Income, Inc. and FPA Paramount
Fund, Inc. did not pay any distributions from long-term capital gains in 2004.