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Messages - mrwhizzard

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Investors - LC / Re: Deadbeats
« on: February 24, 2017, 03:48:23 PM »
At Lending Club, I have had 2 notes charge-off with $0 payment (out of 371 notes with 41 charge-offs), and another 2 with only a single payment before charge-off.

My Prosper account has had 1 charge-off with $0 payment (out of 511 notes, with 28 charge-offs).

General P2P Lending Discussion / Re: p2p lending tax rates
« on: February 24, 2017, 03:27:22 PM »
I am not a tax advisor, but:

My question is this: would my tax on 1099 OID earnings be my marginal income tax rate ONLY (15%), or would I pay income tax AND self employment tax (30.3%) on those earnings?

I don't believe that self employment tax would apply to unearned income, which 1099-INT and 1099-OID is. I found this article on Zack's (
Unearned income, such as stock sales, interest, dividends, and gains on selling your home or other real estate are generally not subject to self-employment taxes. However, if you're a dealer in a particular type of goods, income from that is subject to self-employment tax. For example, say that you flip houses regularly. Since you're a dealer in real estate, your profits on those sales count as ordinary income and are hit with the self-employment tax. Similarly, if you're a stock day trader, your gains and dividends are also subject to self-employment tax.

Investors - P / Re: Prosper Results 2016
« on: February 08, 2017, 12:53:39 PM »
I have also wondered about not only these numbers, but the numbers that the Lending Robot app reports for my accounts (which seem to be even more optimistic than the numbers that Prosper and LC report).

As another data point, I compute my Prosper rate (using XIRR with cash deposit dates) as 10.9% for 2015, and 8.97% overall. Prosper current shows 11.79% for all notes, although that number jumps around a lot (just a week ago it was down around 10.5%). Lending Robot shows my "expected return" as 12.52%.

Investors - P / Re: prosper 1099-B tax questions
« on: February 03, 2017, 12:14:34 PM »
They are listed once for their portion of box 1d and once for their portion of box 1e.
I just reported all mine together with 'various' for the date.
Are you saying you combined just the two lines into one entry, or that you combined all of your prosper transactions into one entry (or two rather, one for short term and one for long term)?

Investors - P / prosper 1099-B tax questions
« on: February 02, 2017, 10:43:22 AM »
So I got my first Prosper 1099-B (last year, I hadn't been investing long enough to have any charge-offs). Unlike Lending Club, where each loan is listed once, it appears that Prosper lists a loan twice in some cases: once for the charge-off, and once for the recovery. Is the right way to report this to enter two lines on form 8949 in these cases? Or should it be combined to show the charge-off cost basis and the recovery proceeds on the same line? I see that they list different dates sold for each of the two transactions, so potentially this could get messy if it straddled a short-term/long-term boundary.

Investors - LC / pre-emptive collections log?
« on: January 09, 2017, 01:24:13 PM »
From time to time, I have seen listed in the collections log for a note that a buyer has called and "promised to pay" prior to the payment due date. For example, loan 55309949...

Payment History:
Due Date // Settlement Date // Payment Status
12/28/16 // --- // Pending
11/28/16 // 12/1/16 // Completed
10/28/16 // 11/2/16 // Completed

Collection Log:
12/19/16 (Monday)    Borrower contacted Payment Solutions specialist and promised to pay

What does this mean? Is the borrower calling in to say their payment will be late, but is coming?

Investors - P / PMI7 Credit Model
« on: December 12, 2016, 09:54:09 PM »
I just received this email from Prosper:

Prosper is planning to launch its 7th generation credit model (PMI7) around December 20, 2016.  As part of this process, Prosper is changing its credit bureau from Experian to Transunion (“TU”).

There are further details, but I didn't quite understand this particular point:

Binary declines in the Credit Guidelines have been modified to accommodate the Transunion data, but they have not been loosened.

Any idea what they mean here?

Investors - LC / FICO updates for charged off loans?
« on: November 07, 2016, 05:20:53 PM »
I was just browsing through some charged off loans, and happened to notice that I am still getting FICO updates for loans ever after they have charged off.

I guess I wouldn't have expected any updates post charge-off. Is this normal?

Investors - P / Re: payment reversed 2+ months later?
« on: May 25, 2016, 09:54:24 AM »
All the borrower has to do is call the lender and say "I don't want my bank account debited for future payments." All ACH debits after that date are now officially #1s. 

Better way to state is "1a. All debits after mm/dd/yy were never authorized by the account holder."

I guess I might be giving Prosper too much credit here, but I was making an assumption that they would in fact honor a request to end ACH debits. That process seems to work at LC anyway, because I've seen plenty of cases where the borrower turns off ACH.

Investors - P / Re: payment reversed 2+ months later?
« on: May 23, 2016, 04:14:12 PM »
I didn't find much info at Wikipedia, but I did find elsewhere that there are only three reasons that an ACH debit can be disputed:

1. If it was never authorized by the account holder
2. If it was processed on a date earlier than authorized
3. If it is for an amount different than authorized

I'm trying to envision which of these 3 could possibly be applicable here, and the only scenario that I can think of is if someone provided account information that they were not the account holder for.

Investors - P / payment reversed 2+ months later?
« on: May 23, 2016, 02:36:36 PM »
I just saw this on one of my Prosper notes. How can a loan payment be reversed 2 and a half months after the fact?

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