FPA FUNDS
NOTICE ACCOMPANYING IRS FORM 1099 - 2007 Tax Year
The Form 1099 shows the federal tax status of dividends and distributions paid
to you which are taxable in 2007. 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 CAPITAL FUND, INC. |
28.7% |
29.3% |
FPA CRESCENT FUND, INC. |
19.7% |
23.7% |
FPA NEW INCOME, INC. |
6.1% |
—- |
FPA PARAMOUNT FUND, INC. |
-- |
100.0% |
FPA PERENNIAL FUND, INC. |
-- |
96.6% |
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. |
5.2% |
7.9% |
17.3% |
6.1% |
39.9 |
23.6% |
FPA CRESCENT FUND |
3.3% |
29.0% |
34.9% |
17.2% |
9.6% |
6.0% |
FPA PERENNIAL FUND, INC. |
10.3% |
19.8% |
18.8% |
4.8% |
10.5% |
35.8% |
FPA New Income, Inc. and FPA Paramount Fund, Inc. did not pay any
distributions from long-term capital gains in 2007.