Author Topic: prosper 1099-B tax questions  (Read 1386 times)

mrwhizzard

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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.

bobeubanks

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Re: prosper 1099-B tax questions
« Reply #1 on: February 03, 2017, 12:58:20 AM »
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.

Short term and long term should be reported separately by Prosper and indicated in box 2.

mrwhizzard

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Re: prosper 1099-B tax questions
« Reply #2 on: February 03, 2017, 12:14:34 PM »
Quote
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)?

bobeubanks

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Re: prosper 1099-B tax questions
« Reply #3 on: February 03, 2017, 12:39:38 PM »
I only had long term, so I only had one Prosper entry in my return which used the exact numbers on my single 1099B from Prosper. I'm pretty sure the breakdown after the 1099B that Prosper gives you is for your information and that doesn't go to the IRS. In the end, the IRS is really only concerned with matching the taxable numbers on your return with what your brokers send and if the numbers match and are on the right form, I don't think the IRS cares about dates or other note details.