Author Topic: Not worth the returns after taxes.  (Read 24176 times)

BruiserB

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Re: Not worth the returns after taxes.
« Reply #45 on: April 13, 2017, 10:34:49 PM »
Back when this thread started I think Lending Club was just issuing a 1099OID and then gave you a list of your written off notes and you basically had to figure out how to make the adjustment yourself.  They didn't issue a 1099B form basically declaring them as Capital Losses.  So there was a lot more doubt on how to report these on taxes and I think one could build a better case for interpreting the rules in different ways should the IRS have audited you.  However the last few years Lending Club has issued the 1099B forms and even provided their guide to do taxes even though I believe they still disclaim that it is tax advice.  You can certainly choose to report things differently than Lending Club recommends, but you should be aware that the red flags will go up when the IRS notices that you had 1099B transactions that you didn't report and they will probably wonder why you adjusted the OID number.  Those red flags may cause an audit and then you will get the opportunity to explain to them in person why you decided to do what you did.  Let us know how it turns out.