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| Information for Investors Regarding Tax Reporting |
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The PowerShares DB commodity and currency funds (eleven in total) provide their returns by holding US T-Bills and exchange traded futures contracts. The IRS requires these funds to be marked to market at the end of each year, at which time investors are apportioned their pro rata shares of gains or losses.
Tax information was sent to investors for tax year 2006 on a "grantor trust letter", which was sent out in early march 2007, and was nearly identical in format to a Form K-1. For tax year 2007, the IRS has requested that the funds use an actual Form K-1 format. The difference between the grantor trust letter and the Form K-1 is minimal, and and an investor’s tax obligation is the same regardless of the form on which it appears.
We anticipate having the 2007 tax information for our eleven funds available on the web the last week of February 2008 and mailed out to investors the first week of March 2008. The toll-free numbers for our funds are below, and investors can use a turbo-tax download from our website at:
https://www.taxpackagesupport.com/dbfunds
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| Fund | Toll-free Number |
| PowerShares DB Commodity Index Tracking Fund (DBC) | 800-578-8755 |
| PowerShares DB G10 Currency Harvest Fund (DBV) | 877-527-6397 |
| PowerShares DB Oil Fund (DBO) | 866-592-6421 |
| PowerShares DB Energy Fund (DBE) | 866-592-6159 |
| PowerShares DB Precious Metals Fund (DBP) | 866-592-6423 |
| PowerShares DB Gold Fund (DGL) | 866-592-6361 |
| PowerShares DB Silver Fund (DBS) | 866-592-5929 |
| PowerShares DB Base Metals Fund (DBB) | 866-592-5848 |
| PowerShares DB Base Agriculture Fund (DBB) | 866-526-0136 |
| PowerShares DB US Dollar Index Bullish Fund (UUP) | 866-592-6425 |
| PowerShares DB US Dollar Index Bearish Fund (UDN) | 866-592-6424 |
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Please note that neither Deutsche Bank nor its affiliates provides legal, tax or accounting advice. The above also does not address shareholders with certain special situations (as described in the relevant prospectus). For full information, investors should read the prospectus for the relevant fund. Investors also should consult their tax advisors. |
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| Distribution Tax Q&A |
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| POWERSHARES DB FUNDS DECLARE DISTRIBUTION |
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| The following discussion describes the material United States federal income tax considerations associated with this distribution for United States Shareholders (as defined in the prospectus). This discussion does not address shareholders with certain special situations (as described in the prospectus). However, we cannot assure you that the United States Internal Revenue Service or the courts will agree with the tax consequences described below. A different treatment from that described below could adversely affect you. Accordingly, we urge you to consult your own tax adviser concerning the particular United States federal income tax consequences to you of this distribution, as well as any consequences to you arising under the laws of any other taxing jurisdiction. |
Deutsche Bank AG, including its subsidiaries and affiliates, does not provide legal, tax or accounting advice. This communication (including any attachments) was not intended or written to be used, and cannot be used or relied upon, by any taxpayer for purposes of avoiding any U.S. federal tax penalties. |
What is this distribution? This distribution generally should be considered as a non-taxable return of investment or capital. |
Is this distribution a taxable dividend or income for federal income tax purposes?No. This distribution generally should not be reported as a taxable dividend or otherwise as taxable income on federal income tax returns. Instead, holders of the PowerShares DB funds will be required to report their allocable share of partnership income and other items which will be provided to them in letters that they should receive in February 2008.
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How will investors know what to report on their 2007 federal income tax returns? PricewaterhouseCoopers (PwC) has been retained by DB Commodity Services LLC to provide tax information to holders of the PowerShares DB funds for tax year 2007. This information will include instructions on how investors should report their allocable share of partnership income and other items on 2007 federal income tax returns.
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