LC Tax Documents available now!

[yojoakak]

https://www.lendingclub.com/account/taxDocuments.action" class="bbc_link" target="_blank">https://www.lendingclub.com/account/taxDocuments.action

Mine's 100+ pages long.


Still waiting on Foliofn, though.

[daniel2023]

Yikes... mine's a measly 5 pages.

So, I see box 7 is empty... does that mean LC has not including their servicing fees in the calculation?

[Keltset]

Folio docs are in my account... Taking a look to see how these measure up to what I was expecting to see in both the LC and Folio accounts.

edit: Interestingly no 1099-B in the LC account for the charge-off's as indicated here: http://www.lendingclub.com/kb/index.php?View=entry&EntryID=240" class="bbc_link" target="_blank">http://www.lendingclub.com/kb/index.php?View=entry&EntryID=240

[AmCap]

https://forum.lendacademy.com/index.php?topic=684.msg3255#msg88888888Quote"> from: Keltset on January 31, 2013, 10:42:47 AM

[New Jersey Guy]

"I think that might  lead people to conclude that they can deduct the difference between the sale proceeds and par value (which for distressed notes in particular would be a huge discrepancy). "

Agreed!  I'm not sure what we're supposed to do with that!  Since all my notes are distressed, that statement makes it look like I had huuuuge losses!  I don't know why the acutal selling price (and difference) aren't listed on that.

So what do we do with this thing?  Are we supposed to print all those pages and turn them over to the accountant even though it's not a correct summary?   Or, do I print them up along with my Excel records which shows the correct short term gains?

What a nightmare.  It looks like lots and lots of printing for statements that don't actually summarize much at all.

[TravelingPennies]

Looking at the numbers given me by Lending Club and Folio, it seems like they want me to pay tax on an amount nearly double my actual profits in that time period. And if it's all categorized as "short term gains" I'm going to pay something like 75% of my actual gains in tax. Whuh?

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=684.msg3259#msg88888888Quote"> from: SarahV on January 31, 2013, 12:27:08 PM

[TravelingPennies]

I'm in a FolioFn state so all notes were bought on Folio and I sold quite a few as well.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=684.msg3258#msg88888888Quote"> from: New Jersey Guy on January 31, 2013, 12:07:44 PM

[desk8149]

The LC 1099-OID does not include the charge off loans so the amount is too high.  I understand we need a separate 1099-B to be able to claim the charge offs.  When will that be available?  I am looking to submit my tax return ASAP for a refund.  Thanks.

[SeanMcD]

https://forum.lendacademy.com/index.php?topic=684.msg3254#msg88888888Quote"> from: daniel2023 on January 31, 2013, 08:45:54 AM

[TravelingPennies]

Ok we are in tax FUBAR land at this point.  I can't cite chapter and verse, but youshould be able to include investment fees paid into your basis. Also,  your adjusted basis in each note is your cost basis plus OID less payments received.  Any number other than that isn't correct, either for purposes of calculating bad debt deductions or gain/lloss on a trade.

Peter, you have contacts at LC right?  Is this worth bringing to their attention?

[Peter]

I can certainly bring it to the attention of LC but they have been less than open in the past to any discussion about taxes. As AmCap rightfully points out there is no standard way to report.

You can read my tax post from 2012, I will be doing a 2013 version of this post with more detail in the next few weeks but you can read through some of the comments here from CPA's:
http://www.lendacademy.com/a-guide-to-filing-your-lending-club-and-prosper-taxes/" class="bbc_link" target="_blank">http://www.lendacademy.com/a-guide-to-filing-your-lending-club-and-prosper-taxes/

The bottom line is there is no agreement on how to report this. But to do it right you should make sure to deduct your losses otherwise you will be paying for more in taxes than necessary. Once again the 1099-OID is not your friend.

[Computerizer]

By the way, according to http://taxes.about.com/od/Federal-Income-Taxes/qt/tax-deadlines.htm" class="bbc_link" target="_blank">this page, 1099-Bs do not need to be sent out to us by institutions until February 15th, though most other 1099s and W-2s are of course due January 31st.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=684.msg3265#msg88888888Quote"> from: SeanMcD on January 31, 2013, 04:24:51 PM