Author Topic: Tax question  (Read 2404 times)

jd

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Tax question
« on: November 30, 2017, 07:19:06 PM »
I was wondering what I would have to pay on my taxes for Lending Club.  Would it just be treated like normal income? If so in New Jersey I'd pay 5.525% 

Forgive me if they question seems simple minded. I've never had an investment quite like this one.

Thanks

Fred93

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Re: Tax question
« Reply #1 on: November 30, 2017, 07:39:00 PM »
Short answer...
The interest you receive is "ordinary income", just like interest you get from anywhere else.
The chargeoffs are treated as "capital gain" (loss) which goes on schedule D, just like loss on stocks.

Longer answer...
You may want to read about OID and whatnot.

storm

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Re: Tax question
« Reply #2 on: November 30, 2017, 07:42:57 PM »
Yes, it is investment income...like interest earned in a savings account.  Charged off loans are treated as capital losses.  Capital gains/losses also apply to any traded loans.  You can deduct up to $3,000 in losses in a single year unless you have gains to offset it.  Anything over $3,000 can be rolled over into the next year.

jd

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Re: Tax question
« Reply #3 on: December 02, 2017, 10:13:44 AM »
Thank you both very much.