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Author Topic: Lending Club Cost Basis

J
  • Posts: 47
Lending Club Cost Basis
OP: January 29, 2015, 12:00:00 AM
Well, the new LC tax forms are out, and Lending Club has added a fun surprise, cost basis is now reported to the IRS, using a method that is in line with LC's traditional high standards for accuracy and reporting.  Also, cost basis has been reported for each individual Folio note transaction, so we can have more fun.

To be fair, it's only like 5 dollars off from my method, but good luck ever trying to figure that out, and it looks like some of the more optimistic methods of calculating cost basis for LC notes are about to be rendered obsolete.
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T
  • Posts: 6588
Lending Club Cost Basis
#1: February 03, 2015, 12:00:00 AM
Huh, two revisions so far by LC.  Good thing I didn't try to file as early as possible!
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U
  • Posts: 26
Lending Club Cost Basis
#2: February 04, 2015, 12:00:00 AM
Just one more thing for my poor accountant to deal with  ;D
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t
  • Posts: 36
Lending Club Cost Basis
#3: February 04, 2015, 12:00:00 AM
This will be my first year filing taxes with LC account.  I'm dreading it because it is new, fairly major ripple in taxes AND it sounds like LC is throwing some nice curve balls at us too.
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r
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  • Posts: 575
Lending Club Cost Basis
#4: February 04, 2015, 12:00:00 AM
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T
  • Posts: 6588
Lending Club Cost Basis
#5: February 04, 2015, 12:00:00 AM
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c
  • Posts: 227
Lending Club Cost Basis
#7: February 04, 2015, 12:00:00 AM
This new development is complete BS.  What, did tax laws change this year?  Or did LendingClub SCREW UP previous years? 

Prosper reported basis for TY2013.  And possibly earlier.  As much as I'd like to see things stay the way they were at LC, I'd get much more enjoyment from seeing LC get called out for their previous methods.  What, is this just going to be another case of "that was the past, just sweep it under the rug" like the IRA deal??

LC could have freaking warned us that this was coming.  You know, during the year when quarterly estimated tax payments were being made and more importantly when certain investment decisions were being made?
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b
  • Posts: 69
Lending Club Cost Basis
#8: February 04, 2015, 12:00:00 AM
Blame this one (mostly) on the IRS.

From the IRS explanation on what are "covered securities" under the cost basis reporting requirment:

Certain other types of securities (e.g., debt instruments and options) will be covered if acquired after January 1, 2014.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Cost-Basis-Reporting-FAQs

(I'm not sure why the cost basis reporting faq is under small businesses & self-employed section)
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