Author Topic: 2013 Consolidated 1099s Available!  (Read 29913 times)

SkaXc0re77

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Re: 2013 Consolidated 1099s Available!
« Reply #30 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?

Fred

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Re: 2013 Consolidated 1099s Available!
« Reply #31 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.

Bohb Daishi

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Re: 2013 Consolidated 1099s Available!
« Reply #32 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.
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ggnoob1337

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Re: 2013 Consolidated 1099s Available!
« Reply #33 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!

OptionsTraderFL

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Re: 2013 Consolidated 1099s Available!
« Reply #34 on: February 04, 2014, 09:55:27 AM »
Just a thought: What about electing marked to market?

desk8149

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Re: 2013 Consolidated 1099s Available!
« Reply #35 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.

desk8149

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Re: 2013 Consolidated 1099s Available!
« Reply #36 on: February 06, 2014, 09:22:55 AM »
Hi. Can anyone confirm that my method above of reporting charge offs is correct?  Thanks.

Joleran

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Re: 2013 Consolidated 1099s Available!
« Reply #37 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.

ggnoob1337

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Re: 2013 Consolidated 1099s Available!
« Reply #38 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?

thezinfan

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Re: 2013 Consolidated 1099s Available!
« Reply #39 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.

ggnoob1337

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Re: 2013 Consolidated 1099s Available!
« Reply #40 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!

Bohb Daishi

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Re: 2013 Consolidated 1099s Available!
« Reply #41 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.
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Fred

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Re: 2013 Consolidated 1099s Available!
« Reply #42 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"

core

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Re: 2013 Consolidated 1099s Available!
« Reply #43 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.

Bohb Daishi

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Re: 2013 Consolidated 1099s Available!
« Reply #44 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."
There are three ways to make a living in this business: be first, be smarter, or cheat.