MIC is a corporation domiciled in Delaware. Its fiscal year is the calendar year. Distributions to shareholders during any calendar year are reported following the year end on Form 1099-DIV. Distributions may be characterized as either a Dividend reported in Box 1, or as a Return of Capital reported in Box 3 (other non-dividend income) of the Form 1099-DIV. If you are an MIC shareholder you will receive a Form 1099-DIV containing this information from your broker or custodian, not from MIC.
Please note the following important information regarding distributions made in calendar 2017:
Your basis in any MIC LLC interests or MIC stock (“shares”) acquired on or after January 1, 2007 will be the cost of those shares (assuming you purchased the shares and did not acquire them as a gift or inheritance), reduced by any return of capital distributions you received.
As of January 1, 2007, MIC made an election to be treated as a corporation for income tax purposes. Prior to that date MIC had been treated as a partnership for tax purposes. If you acquired shares in MIC prior to January 1, 2007 your basis in the shares you held on that date can be determined using the rules for determining basis in a partnership.
Your basis in shares purchased prior to January 1, 2007 is further reduced by any return of capital distributions you may have received after that date.
The information provided herein is of a general nature only and does not take into account any person’s tax objectives, situation or needs – it does not constitute legal or tax advice nor should it be relied on as such. This information cannot and does not address all of the taxation issues that may be relevant to a shareholder. It is recommended that all persons obtain their own taxation advice regarding any current or potential investments in MIC. Each shareholder takes full and sole responsibility for any investment in MIC and the associated taxation implications arising from that investment including any changes in those taxation implications over time. Shareholders should consult with their own independent tax advisors for relevant tax advice.