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Lending Club Discussion => Investors - LC => Topic started by: Zach on January 30, 2014, 09:23:11 PM

Title: 2013 Consolidated 1099s Available!
Post by: Zach on January 30, 2014, 09:23:11 PM
Just a quick heads up that LC 1099's are finally posted!
Title: Re: 2013 Consolidated 1099s Available!
Post by: Randawl on January 30, 2014, 09:26:40 PM
Woohoo!  /nerdhighfive!              :D
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 30, 2014, 09:33:10 PM
You guys are twisted individuals.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Zach on January 30, 2014, 09:35:14 PM
Can anyone more precisely elaborate on how the 1099-B reporting should work? What does the IRS expect to be reported for Folio sales (along with the fact that no cost-basis is reported by LC/Folio)?
Title: Re: 2013 Consolidated 1099s Available!
Post by: Zach on January 30, 2014, 09:36:44 PM
You guys are twisted individuals.

How does wanting to get my taxes filed and a refund in my bank account categorize me as "twisted"?
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 30, 2014, 09:40:58 PM
How does wanting to get my taxes filed and a refund in my bank account categorize me as "twisted"?

I suppose that's fair.  I didn't know you lent the government money.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Zach on January 30, 2014, 09:45:02 PM
How does wanting to get my taxes filed and a refund in my bank account categorize me as "twisted"?

I suppose that's fair.  I didn't know you lent the government money.

Unfortunately, paying self-employment (estimated quarterly payments) tax sucks
Its definitely no voluntary :)
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 30, 2014, 09:56:48 PM
Unfortunately, paying self-employment (estimated quarterly payments) tax sucks

Actually I find that it makes it much easier to pay exactly what you owe that way.  Down to the dollar.  If you overpaid you could have cut back on your Jan 15th payment.

Are Folio 1099's posted too?
Title: Re: 2013 Consolidated 1099s Available!
Post by: Zach on January 30, 2014, 09:58:41 PM
Unfortunately, paying self-employment (estimated quarterly payments) tax sucks

Actually I find that it makes it much easier to pay exactly what you owe that way.  Down to the dollar.  If you overpaid you could have cut back on your Jan 15th payment.

Are Folio 1099's posted too?

This is probably true, but when I looked into it, it was far more complicated to justify why your estimated payments were lower....
1099-B is posted for folio
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 30, 2014, 10:17:07 PM
I see that they've combined them this year; that's new.  304 pages.  Ugh.  Yeah I'll just get right on this.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Randawl on January 30, 2014, 10:21:58 PM
I see that they've combined them this year; that's new.  304 pages.  Ugh.  Yeah I'll just get right on this.

Wow I've got half that and I thought I had a lot!
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 30, 2014, 10:48:31 PM
That's a respectable number, Randawl.  Didn't know you were such an active trader?

Step by step guide for doing your Lending Club 2013 taxes:
1. File for an extension.
2. Hope for a 16-ton weight to drop on your head before October.
Title: Re: 2013 Consolidated 1099s Available!
Post by: yojoakak on January 30, 2014, 11:00:44 PM
Only 44 pages for me! Woohoo!

Hey check this out! LendingClub is hosting their "2013 Tax Form Guide" on Amazon's servers. I suppose to prevent a mad rush of traffic to their own site. Oh pity the poor LendingClub webserver. What does it run on? A Timex?

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fi60.tinypic.com%2F554gbb.jpg&hash=5e591fc21183688568fbcdf5d6ca00b4)
Title: Re: 2013 Consolidated 1099s Available!
Post by: Randawl on January 30, 2014, 11:14:30 PM
That's a respectable number, Randawl.  Didn't know you were such an active trader?

Yes indeed, I just don't often tend to discuss it much.

Quote
Step by step guide for doing your Lending Club 2013 taxes:
1. File for an extension.
2. Hope for a 16-ton weight to drop on your head before October.

+1
Title: Re: 2013 Consolidated 1099s Available!
Post by: Joleran on January 31, 2014, 10:49:11 AM
Huh, mine isn't posted.  Statements -> Tax Documents right?  They haven't moved it?
Title: Re: 2013 Consolidated 1099s Available!
Post by: New Jersey Guy on January 31, 2014, 10:55:43 AM
Quote
Huh, mine isn't posted.

You know what?  I could have sworn seeing my tax statement a couple of days ago.  It was like 60-sum pages long. 
Now it's not there! 
Title: Re: 2013 Consolidated 1099s Available!
Post by: cnmor54 on January 31, 2014, 11:02:12 AM
Mine was there last night but now it's gone  :-[
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 31, 2014, 11:27:52 AM
Mine has disappeared as well.  Last year Prosper had to send out like 2 corrections to everyone, as I recall.  What I think happened here is LC discovered a mistake and yanked them all.  More incompetence.  Is anyone really surprised?

Assuming there was a mistake, I'd like to know what's going to happen to the people who downloaded theirs last night and are already doing their taxes?  From history we know that Lending Club is not going to send out a massive email saying they screwed up.

By the way yojoakak, nice job on that Atari photo, if that's your handiwork.  Strange that they'd be hosting anything on Amazon when they have all those EdgeCast servers at their disposal, which are well suited for static content.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Randawl on January 31, 2014, 11:55:18 AM
Mine has disappeared as well.  Last year Prosper had to send out like 2 corrections to everyone, as I recall.  What I think happened here is LC discovered a mistake and yanked them all.  More incompetence.  Is anyone really surprised?

Assuming there was a mistake, I'd like to know what's going to happen to the people who downloaded theirs last night and are already doing their taxes?  From history we know that Lending Club is not going to send out a massive email saying they screwed up.

They had to send out a corrected one last year after I had already used the original to file my taxes.  I'll be interested to see what mistakes were made this time.  Although if I recall correctly, there weren't many significant changes.
Title: Re: 2013 Consolidated 1099s Available!
Post by: SkaXc0re77 on January 31, 2014, 04:55:20 PM
Lots of questions, but I am sure I am not alone:

How do I do the trades on Folio - I have $662.80 subtotal of shortterm transactions for which the basis is NOT reported to the IRS. So basically I must add up my basis and report it myself?  (Thank goodness I don't have 600 pages like some of you if that is the case). 

The 1099-B (recoveries of charged off loans), is that included in the 1099-OID number? Or I have to add that as additional income?

And the Charge Off Report isn't reported at all so I must net that off myself too?

Is it also acceptable to net off the cost of the Interest Radar sub for the year since it is used to generate this investment income?

Any help is ... helpful!


Title: Re: 2013 Consolidated 1099s Available!
Post by: Cries on January 31, 2014, 05:12:40 PM
Lots of questions, but I am sure I am not alone:

How do I do the trades on Folio - I have $662.80 subtotal of shortterm transactions for which the basis is NOT reported to the IRS. So basically I must add up my basis and report it myself?  (Thank goodness I don't have 600 pages like some of you if that is the case). 

The 1099-B (recoveries of charged off loans), is that included in the 1099-OID number? Or I have to add that as additional income?

And the Charge Off Report isn't reported at all so I must net that off myself too?

Is it also acceptable to net off the cost of the Interest Radar sub for the year since it is used to generate this investment income?

Any help is ... helpful!

Yea, fuck these guys.  Could LendingClub be any less helpful?

Im one of the people with 600pages of trades.

Title: Re: 2013 Consolidated 1099s Available!
Post by: SkaXc0re77 on January 31, 2014, 05:18:16 PM
also assuming I do need to find my own folio basis: easy way to get the basis is to go to year end summary at the bottom of "my account" account on the folio main page.  Copy all of that info into excel.  Add another column at the end and do "Purchase Price" - "Principal Received".  Sum up Sale Price, Fee, and the Cost Basis you just made.  Subtract fee and basis from the sale price and boom! 

Not sure how to ACTUALLY report it to the IRS  but at least it you have a nice excel document giving you the info. (yay for -45 dollars on folio)

Sale Total   $669.51
Fee Total   $6.71
Net Sales   $662.80  (this matches the number that the 1099-B reported)
Less Basis   $708.49
Net Income   ($45.69)
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 31, 2014, 05:21:31 PM
I just received this email from LC.  Looks like I was wrong about them not sending out a mass email about last night's incident. 

Quote
Dear Core,

Thank you so much for being a Lending Club investor.

We see in our records that you accessed your 2013 1099 Package last night. The data reported in your 1099 Package has not changed, but we made a few IRS updates to the instructions on the forms since you accessed them. To ensure a smooth tax filing season, please log in again and access the most recent version that is posted in the "Statements" section of your account.

Thank you, and happy tax season.


Best Regards,

Lending Club Investor Services
71 Stevenson St., Ste. 300
San Francisco, CA 94105
(888) 596-3159 (Office)
(415) 632-5611 (Fax)


Im one of the people with 600pages of trades.

Do you really have 600 pages??  Dear Lord.  I have been put to shame!
Title: Re: 2013 Consolidated 1099s Available!
Post by: Verto on January 31, 2014, 05:25:06 PM
I don't have 600 pages, but I do have a good 30+. What really confuses/pisses me off is in 2012 lending club subtotaled all columns for you in their 1099B.

Why did they only subtotal box 2a in 2013 leaving us to manually add up the Principal Balance column? I know that it isn't reported to the IRS, but they could of just added up the total they printed to be a little nice.
Title: Re: 2013 Consolidated 1099s Available!
Post by: cnmor54 on January 31, 2014, 06:12:44 PM
I just received this email from LC.  Looks like I was wrong about them not sending out a mass email about last night's incident. 

Quote
Dear Core,

Thank you so much for being a Lending Club investor.

We see in our records that you accessed your 2013 1099 Package last night. The data reported in your 1099 Package has not changed, but we made a few IRS updates to the instructions on the forms since you accessed them. To ensure a smooth tax filing season, please log in again and access the most recent version that is posted in the "Statements" section of your account.

Thank you, and happy tax season.


Best Regards,

Lending Club Investor Services
71 Stevenson St., Ste. 300
San Francisco, CA 94105
(888) 596-3159 (Office)
(415) 632-5611 (Fax)

I actually believed this for a whole 10 minutes  8)

I don't have 600 pages, but I do have a good 30+. What really confuses/pisses me off is in 2012 lending club subtotaled all columns for you in their 1099B.

Why did they only subtotal box 2a in 2013 leaving us to manually add up the Principal Balance column? I know that it isn't reported to the IRS, but they could of just added up the total they printed to be a little nice.

The Year-end summary has the net gains (or losses). Just subtract from the total sale price under 2b and that's your cost.
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on January 31, 2014, 06:17:10 PM
I actually believed this for a whole 10 minutes  8)

I didn't make it up.  They did in fact send out that email.  I of course changed the first name that appeared in the email, and edited out the part where Stephanie told me I was too much man for her in a P.S.  Other than that, it's as-is.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Joleran on January 31, 2014, 07:48:49 PM
I wouldn't put too much faith in these being the final 1099's.  I show LT capital gains on the 1099-B for a note that charged off in 2011 and hasn't had any collection activity since.
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on February 01, 2014, 12:55:32 AM
I ran a diff on my pdf from last night compared to today's new one.  Here's what it was all about.  On the long term gains section of the 1099-B they changed one letter. 

Original:
Box 1c: Type of Gain – Long Term - Report on Form 8949,
Part II, with Box B checked.


Corrected:
Box 1c: Type of Gain – Long Term - Report on Form 8949,
Part II, with Box E checked.


That's it.  One mystery solved.  Now I'm trying to figure out why I have a 1099-B from LC (not Folio) which shows a ST gain for just 12 notes.  They all show a nonzero sale price.  I wonder what's so special about these that they aren't in the Folio 1099-B instead.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Fred on February 01, 2014, 03:00:46 AM
Now I'm trying to figure out why I have a 1099-B from LC (not Folio) which shows a ST gain for just 12 notes.  They all show a nonzero sale price.  I wonder what's so special about these that they aren't in the Folio 1099-B instead.

These might be recoveries from your charged-off LC loans.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Fred on February 01, 2014, 03:24:53 AM
I don't have 600 pages, but I do have a good 30+. What really confuses/pisses me off is in 2012 lending club subtotaled all columns for you in their 1099B.

Why did they only subtotal box 2a in 2013 leaving us to manually add up the Principal Balance column? I know that it isn't reported to the IRS, but they could of just added up the total they printed to be a little nice.

I was able to simply copy the table and paste it into an Excel file. Additional steps to align the numbers might be necessary, but after that I could add the SUM formula to get the total of all columns.  Didn't take more than 5-min per table.
Title: Re: 2013 Consolidated 1099s Available!
Post by: SkaXc0re77 on February 01, 2014, 10:55:59 AM
I don't have 600 pages, but I do have a good 30+. What really confuses/pisses me off is in 2012 lending club subtotaled all columns for you in their 1099B.

Why did they only subtotal box 2a in 2013 leaving us to manually add up the Principal Balance column? I know that it isn't reported to the IRS, but they could of just added up the total they printed to be a little nice.

I was able to simply copy the table and paste it into an Excel file. Additional steps to align the numbers might be necessary, but after that I could add the SUM formula to get the total of all columns.  Didn't take more than 5-min per table.

It is.

But now is that separate from the first page reporting IOD income?  Like I only had 1.20 from the 1099-B from LC, that 1.20 is not included in the IOD right?

Also wouldn't I not have to pay taxes on the 1099-B from LC since I paid 25 bucks into a note, it defaulted and then gave me a buck twenty - thats recovery of capital, not income right?
Title: Re: 2013 Consolidated 1099s Available!
Post by: Fred on February 01, 2014, 11:43:52 AM
But now is that separate from the first page reporting IOD income?  Like I only had 1.20 from the 1099-B from LC, that 1.20 is not included in the IOD right?

Also wouldn't I not have to pay taxes on the 1099-B from LC since I paid 25 bucks into a note, it defaulted and then gave me a buck twenty - thats recovery of capital, not income right?

The last sections of the statement contain "charged-off" LT & ST reports.    You can deduct them as investment loss (up to $3K). 

The 1099-B from LC contains the recoveries/sales from LC charged-off notes.  This means your charged-off notes were not really dead, but you were able to get something back from some of them.  You will have pay tax on the recoveries. ;)

I am not a tax professional; please consult your tax advisor.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Bohb Daishi on February 03, 2014, 01:29:52 AM
(Thank goodness I don't have 600 pages like some of you if that is the case).

If you are actively trading on the folio, you should qualify as a "day trader", meaning your taxes go something like this:

Taxable Profit = (Ending Balance) - (Beginning Balance) + (Money Withdrawn) - (Money Added).

It's a bit more complicated since you have to account for the balances not being correct (i.e. buying a bankrupt note at -95% discount shows up at par in your account statement). But being able to use that equation makes very simplified and easy.
Title: Re: 2013 Consolidated 1099s Available!
Post by: ggnoob1337 on February 04, 2014, 08:57:30 AM
Since I just started Lending Club last year, this is my first time doing taxes with Lending Club. Anybody have a good explanation on how to enter these into Turbo Tax (or any other software as I'm sure they are are similar).

For the 1099-OID, all I have is Box 7 (Description) and Box 1 (Original Issue Discount for 2013, which appears to be the interest earned). So that document seems easy enough and I just entered those 2 fields.

For the 1099-B, I have 8 pages of FOLIOfn transactions. Do I have to enter each line manually? I'm sure mine is the same as everyone else's here...I have Box 1a, Box 1b, Box 1c, Box 8, Box 2a, and Box 4. Then it also lists the Principal Balance at Sale Date. Since I'm new to this, it seems like if I enter only those boxes, I'm going to get charged tax for the full amount of everything I sold. But I'd assume I should only get charged for any profits I made. Any tips for entering FOLIOfn information is appreciated!
Title: Re: 2013 Consolidated 1099s Available!
Post by: OptionsTraderFL on February 04, 2014, 09:55:27 AM
Just a thought: What about electing marked to market?
Title: Re: 2013 Consolidated 1099s Available!
Post by: desk8149 on February 05, 2014, 03:49:40 PM
I am using Taxact.  When reporting the charged off loans, I use Form 8949 and list the TOTAL amount as the Cost or basis, Date acquired as "various" and the proceeds as "Worthless" and check off S/T or L/T transactions not reported on 1099-B.  Does that seem correct?  Thanks.
Title: Re: 2013 Consolidated 1099s Available!
Post by: desk8149 on February 06, 2014, 09:22:55 AM
Hi. Can anyone confirm that my method above of reporting charge offs is correct?  Thanks.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Joleran on February 06, 2014, 02:30:00 PM
Hi. Can anyone confirm that my method above of reporting charge offs is correct?  Thanks.

No one can.  The IRS has not ruled on these officially.  Your method seems reasonable though.
Title: Re: 2013 Consolidated 1099s Available!
Post by: ggnoob1337 on February 12, 2014, 01:38:26 PM
Since I just started Lending Club last year, this is my first time doing taxes with Lending Club. Anybody have a good explanation on how to enter these into Turbo Tax (or any other software as I'm sure they are are similar).

For the 1099-OID, all I have is Box 7 (Description) and Box 1 (Original Issue Discount for 2013, which appears to be the interest earned). So that document seems easy enough and I just entered those 2 fields.

For the 1099-B, I have 8 pages of FOLIOfn transactions. Do I have to enter each line manually? I'm sure mine is the same as everyone else's here...I have Box 1a, Box 1b, Box 1c, Box 8, Box 2a, and Box 4. Then it also lists the Principal Balance at Sale Date. Since I'm new to this, it seems like if I enter only those boxes, I'm going to get charged tax for the full amount of everything I sold. But I'd assume I should only get charged for any profits I made. Any tips for entering FOLIOfn information is appreciated!

Referring to the quoted post above, anybody have any advice on how to enter the FOLIOfn information on our taxes?
Title: Re: 2013 Consolidated 1099s Available!
Post by: thezinfan on February 12, 2014, 04:16:45 PM
I've always consolidated my LC entries on Schedule D. I don't list each transaction, I sum up all the LT and ST transactions separately (they used to do this for you, now just use Excel) and list each as LT Sales and ST Sales. Two entries instead of 1000.
Title: Re: 2013 Consolidated 1099s Available!
Post by: ggnoob1337 on February 12, 2014, 04:51:27 PM
I've always consolidated my LC entries on Schedule D. I don't list each transaction, I sum up all the LT and ST transactions separately (they used to do this for you, now just use Excel) and list each as LT Sales and ST Sales. Two entries instead of 1000.

Sounds like a good idea to me. I'll look into this. Thanks!
Title: Re: 2013 Consolidated 1099s Available!
Post by: Bohb Daishi on February 13, 2014, 02:01:06 AM
I've always consolidated my LC entries on Schedule D. I don't list each transaction, I sum up all the LT and ST transactions separately (they used to do this for you, now just use Excel) and list each as LT Sales and ST Sales. Two entries instead of 1000.

Sounds like a good idea to me. I'll look into this. Thanks!

Don't quote me on this, but I'm pretty sure you are supposed to list every transaction. But I can't see the IRS getting too angry if you summed them up instead to save time, as long as the numbers were the same. It would probably increase the chance of getting audited though.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Fred on February 13, 2014, 02:35:19 AM
I've always consolidated my LC entries on Schedule D. I don't list each transaction, I sum up all the LT and ST transactions separately (they used to do this for you, now just use Excel) and list each as LT Sales and ST Sales. Two entries instead of 1000.

Sounds like a good idea to me. I'll look into this. Thanks!

Don't quote me on this, but I'm pretty sure you are supposed to list every transaction. But I can't see the IRS getting too angry if you summed them up instead to save time, as long as the numbers were the same. It would probably increase the chance of getting audited though.

As you can see on the top of IRS Schedule D (http://www.irs.gov/pub/irs-pdf/f1040sd.pdf):

"Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10"
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on February 13, 2014, 03:02:48 AM
Summing them up on schedule D is out of the question.  Summing them up on form 8949 is more in reasonable territory.  You are only supposed to do this if the securities bought&sold are "substantially the same" as I recall.  As for whether different LC notes are substantially the same, I doubt it.  But I make it a rule not to get mixed up in tax threads.  (Actually it's more of a guideline.)

So you are supposed to list each one singly.  And you are allowed to round everything to the nearest dollar.   No, not just allowed, you're required to if you round off the rest of your return.  For an active Folio trader this could get quite interesting if you regularly make only a small profit per note.  If you are careful about your selling prices throughout the year you can have it such that your profit is $0 for each sale.  Quite legally, too.  Multiply that times tens of thousands of sales and you've got quite a racket going.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Bohb Daishi on February 13, 2014, 03:20:56 AM
If you are careful about your selling prices throughout the year you can have it such that your profit is $0 for each sale.  Quite legally, too.  Multiply that times tens of thousands of sales and you've got quite a racket going.

I would love to see you try to argue this to an IRS agent. "Yes, sir, because I applied the rounding principal as instructed, that $.49 cent profit that I earned half a million times ended up being zero."
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on February 13, 2014, 03:45:27 AM
I would love to see you try to argue this to an IRS agent.

That's the beauty of it:  There's no argument to be had, because them's the rules, in black & white.  Few things in life are more fun than malicious compliance.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Bohb Daishi on February 13, 2014, 04:13:03 AM
That's the beauty of it:  There's no argument to be had, because them's the rules, in black & white.  Few things in life are more fun than malicious compliance.

Except that "If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total." -http://www.irs.gov/instructions/i1040sd/ch02.html

You don't round at the transaction-level, you round the aggregate. This rule was implemented for administrative convenience; not as a tax dodge.
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on February 13, 2014, 04:55:08 AM
Except that "If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total." -http://www.irs.gov/instructions/i1040sd/ch02.html

Who said anything about adding two or more amounts to figure the amount to enter on a line?  We aren't talking about any totals in aggregate here.  Form 8949 has individual blanks for single sales. 

Say you bought a note for $23.51 and sold it for $24.49 (after commissions).  The entry would look like this:

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fs14.postimg.org%2Fruum2qdo1%2F8949.png&hash=80440428da50c972c6ff625b5e5c094e)

There are no intermediate steps here,  so the instruction you quoted does not apply in this case.

This rule was implemented for administrative convenience; not as a tax dodge.

It does not matter why a given rule is implemented, only that it exists.  When loopholes are found they eventually plug them, but until then they get used.  That's part of the game.  Since when was compliance with the spirit of the law mandatory?  You'd have a hard time enforcing that.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Bohb Daishi on February 13, 2014, 06:50:25 AM
Say you bought a note for $23.51 and sold it for $24.49 (after commissions).  The entry would look like this:

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fs14.postimg.org%2Fruum2qdo1%2F8949.png&hash=80440428da50c972c6ff625b5e5c094e)

I know the method would work if you are extremely careful with your calculations and sale prices. It would be more pronounced if you were in a high tax bracket.

But I'm viewing this in practical terms. If you were a convenience store, you couldn't just mark every bit of inventory to give you a $0 taxable gross margin. Nor can you do this if you are a market maker in the stock market - those pennies add up. Logically, I can not see your claim holding in court if you were audited.
Title: Re: 2013 Consolidated 1099s Available!
Post by: core on February 13, 2014, 07:12:13 AM
The convenience store isn't affected by any rounding issues because everything's totalled up.  There is no rounding there except for the final steps.  The market maker may be a better example... that's a good one.  But if the bid/ask spread is a nickel, it only takes 20 shares before it's a buck.  (Who runs around trading 20 shares of a low dollar stock?)  So even if the market maker put down each individual trade separately I doubt he'd be getting much of advantage.  In practice I would assume that they'd total up their trades by symbol/exp.month/etc since they are exactly the same security and that would definitely be allowed.  (This means no rounding except the total.)  I wouldn't know, I'm not a market maker.  But I'm just assuming they don't file tens of thousands of pages with their returns.
Title: Re: 2013 Consolidated 1099s Available!
Post by: SkaXc0re77 on February 13, 2014, 08:18:39 AM
(Who runs around trading 20 shares of a low dollar stock?) 

20 ANGI - Angi's List -up $41.60 (17.10 a sahre)
17 CODI - Down 12.75 (18.13)
15 DDD - Had 30 and sold off some during the crazy gains - still up 154.13 (but its 67 a share so not "low  $"
13 DIS - Up 121.94 (same deal - 78 a share)

and more in that under 20 mark :-P

I have 17 positions, 9 are 20 and under, one is 25, only 2 are over 100

Maybe I'm doing it wrong?
Title: Re: 2013 Consolidated 1099s Available!
Post by: Bohb Daishi on February 13, 2014, 10:44:05 AM
(Who runs around trading 20 shares of a low dollar stock?)

Retail investors, as proven by StaXc0re77's post.

Market makers calculate their taxable gain is by using a variation of this ridiculously simple equation: (annual gain/loss) = (ending balance) - (beginning balance) + (money withdrawn) - (money deposited)
Title: Re: 2013 Consolidated 1099s Available!
Post by: wildbill218 on February 13, 2014, 03:24:55 PM
A quick note, while working on my returns today (I use TurboTax Deluxe), I found this utility:
http://1099bimporter.com/release.htm ($4.99) invaluable for creating import files for 1099-B's into form 8949 YMMV.  Not associated with this company or software in any way.
Title: Re: 2013 Consolidated 1099s Available!
Post by: ggnoob1337 on February 14, 2014, 10:12:04 AM
A quick note, while working on my returns today (I use TurboTax Deluxe), I found this utility:
http://1099bimporter.com/release.htm ($4.99) invaluable for creating import files for 1099-B's into form 8949 YMMV.  Not associated with this company or software in any way.

Thanks to your post, I did a quick search and found this website: http://www.easytxf.com/

I just converted my CSV to TXF and imported it into TurboTax Premier (software version) just fine. Wow that saves me a lot of time!
Title: Re: 2013 Consolidated 1099s Available!
Post by: Keltset on February 19, 2014, 11:27:24 AM
(Who runs around trading 20 shares of a low dollar stock?) 

20 ANGI - Angi's List -up $41.60 (17.10 a sahre)
17 CODI - Down 12.75 (18.13)
15 DDD - Had 30 and sold off some during the crazy gains - still up 154.13 (but its 67 a share so not "low  $"
13 DIS - Up 121.94 (same deal - 78 a share)

and more in that under 20 mark :-P

I have 17 positions, 9 are 20 and under, one is 25, only 2 are over 100

Maybe I'm doing it wrong?

Brutal... Why would you hold such low amounts of a single stock in the price range? What on earth are you paying in/out on those transactions against the cost of the entire order? You are holding positions worth a measly $342, $308, $1005, & 1014? :-/ Even adding that together its a really small position for any single holding imho... You said in another thread you had 15k outside of LC is it all like this broken into a ton of small holdings that should really be consolidated into a few solid holdings (IMHO)?

Either way though the benefit isn't the same in rounding practices as this thread is discussing because your differences equate to values larger than a dollar... (Yes, I understand the principle is the same but substantially different and less meaningful when you are rounding to the nearest dollar on a gain of 100.10 vs 0.10)
Title: Re: 2013 Consolidated 1099s Available!
Post by: BruiserB on February 19, 2014, 02:32:14 PM
A quick note, while working on my returns today (I use TurboTax Deluxe), I found this utility:
http://1099bimporter.com/release.htm ($4.99) invaluable for creating import files for 1099-B's into form 8949 YMMV.  Not associated with this company or software in any way.

Thanks to your post, I did a quick search and found this website: http://www.easytxf.com/

I just converted my CSV to TXF and imported it into TurboTax Premier (software version) just fine. Wow that saves me a lot of time!

Where are you guys getting the CSV version of your 1099?  I only see the PDF version Lending Club provides? 
Title: Re: 2013 Consolidated 1099s Available!
Post by: ggnoob1337 on February 20, 2014, 10:40:00 AM
A quick note, while working on my returns today (I use TurboTax Deluxe), I found this utility:
http://1099bimporter.com/release.htm ($4.99) invaluable for creating import files for 1099-B's into form 8949 YMMV.  Not associated with this company or software in any way.

Thanks to your post, I did a quick search and found this website: http://www.easytxf.com/

I just converted my CSV to TXF and imported it into TurboTax Premier (software version) just fine. Wow that saves me a lot of time!

Where are you guys getting the CSV version of your 1099?  I only see the PDF version Lending Club provides?

I copy/pasted from the PDF into Excel and adjusted any formatting as needed. Then just save as .csv in order to do the conversion from CSV to TXF.
Title: Re: 2013 Consolidated 1099s Available!
Post by: Joleran on February 20, 2014, 01:47:51 PM
Question about OID - suppose you buy a note for $1 off of Folio, with $2 in remaining principal.  The note matures, paying you the $2 principal and $1 of interest.

Assuming we take fees out of the equation, is your OID reported on this note $1 or $2?
Title: Re: 2013 Consolidated 1099s Available!
Post by: yojoakak on February 20, 2014, 04:07:47 PM
Question about OID - suppose you buy a note for $1 off of Folio, with $2 in remaining principal.  The note matures, paying you the $2 principal and $1 of interest.

Assuming we take fees out of the equation, is your OID reported on this note $1 or $2?

My guess: Neither.

"...
(1) General rule
For purposes of this title, there shall be included in the gross income of the holder of any debt instrument having original issue discount issued after July 1, 1982, an amount equal to the sum of the daily portions of the original issue discount for each day during the taxable year on which such holder held such debt instrument.
...
(3) Determination of daily portions
For purposes of paragraph (1), the daily portion of the original issue discount on any debt instrument shall be determined by allocating to each day in any accrual period its ratable portion of the increase during such accrual period in the adjusted issue price of the debt instrument. For purposes of the preceding sentence, the increase in the adjusted issue price for any accrual period shall be an amount equal to the excess (if any) of—
(A) the product of—
(i) the adjusted issue price of the debt instrument at the beginning of such accrual period, and
(ii) the yield to maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), over
(B) the sum of the amounts payable as interest on such debt instrument during such accrual period.
..."

http://www.law.cornell.edu/uscode/text/26/1272
Title: Re: 2013 Consolidated 1099s Available!
Post by: BruiserB on February 20, 2014, 10:29:02 PM
Question about OID - suppose you buy a note for $1 off of Folio, with $2 in remaining principal.  The note matures, paying you the $2 principal and $1 of interest.

Assuming we take fees out of the equation, is your OID reported on this note $1 or $2?

It's all in here......

http://www.irs.gov/pub/irs-pdf/p1212.pdf

Likely you will have $1 of OID reported to you on your 1099, but you are supposed to correct it to $2 and pay tax on a $2 gain.