Author Topic: Prosper 1099 Tax forms for tax year 2017  (Read 816 times)

ambivalentonprosper

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Prosper 1099 Tax forms for tax year 2017
« on: February 09, 2018, 05:42:28 PM »
Has anyone taken a look at their forms?  They made some major changes for the 1099-B form.  Previously, in the 2016 tax year, they sent two 1099-B forms, one for long-term and another for short-term losses (it's always losses...).


However, for the 2017 tax year, they have consolidated the 1099-Bs into just one form, and it's not clear whether one has to calculate long-term and short-term losses manually now.  They do give a subtotal for boxes 1D, proceeds, but I do not see a consolidated figure for boxes 1E, cost or other basis, for short-term and long-term calculations. My 1099-B form is over 300 pages, and I hope I don't have to calculate cost basis manually...   :( . Am I missing something obvious? I hope so.
« Last Edit: February 09, 2018, 05:46:45 PM by ambivalentonprosper »

mrwhizzard

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Re: Prosper 1099 Tax forms for tax year 2017
« Reply #1 on: February 09, 2018, 05:59:54 PM »
However, for the 2017 tax year, they have consolidated the 1099-Bs into just one form, and it's not clear whether one has to calculate long-term and short-term losses manually now.  They do give a subtotal for boxes 1D, proceeds, but I do not see a consolidated figure for boxes 1E, cost or other basis, for short-term and long-term calculations. My 1099-B form is over 300 pages, and I hope I don't have to calculate cost basis manually...   :( . Am I missing something obvious? I hope so.

On mine, the summary at the top gives totals for 1d and 1e, but not split out by short-term vs long-term. Each individual transaction identifies itself as short-term vs long-term, however.

Even if they had included short-term and long-term totals separately, don't you have to report each transaction individually on Form 8949? I thought that was a requirement whenever the basis was not reported to the IRS.

TLM

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Re: Prosper 1099 Tax forms for tax year 2017
« Reply #2 on: March 11, 2018, 02:07:14 PM »
I contacted Prosper to ask if they could either provide a short/long term summary, or give us the data in a usable format.  They thought about it for a week and then declined.  I'm very disappointed.  Loans from the last couple years have under-performed their expected returns, there are tons of write offs, and if you're not a bit sophisticated, it could take days to do your taxes optimally with a high chance of mistakes.

I ended up using Tabula + a bit of programming to clean up the data they sent me so that I could summarize it, but that still took a couple hours and seems likely to be beyond many retail investors. 

von

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Re: Prosper 1099 Tax forms for tax year 2017
« Reply #3 on: April 04, 2018, 01:11:51 AM »
I contacted Prosper to ask if they could either provide a short/long term summary, or give us the data in a usable format.  They thought about it for a week and then declined.  I'm very disappointed.  Loans from the last couple years have under-performed their expected returns, there are tons of write offs, and if you're not a bit sophisticated, it could take days to do your taxes optimally with a high chance of mistakes.

I ended up using Tabula + a bit of programming to clean up the data they sent me so that I could summarize it, but that still took a couple hours and seems likely to be beyond many retail investors.

I'm not happy with their customer service, I am now dealing with the same issue - LC seperates long/short term categories and provides totals for each separately.
And the sad thing is, even letting my account draw down I'll have to deal with it for years to come.
« Last Edit: April 04, 2018, 01:29:22 AM by von »

ambivalentonprosper

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Re: Prosper 1099 Tax forms for tax year 2017
« Reply #4 on: May 06, 2018, 11:45:54 AM »
I hope everyone survived the tax season!

A few updates:
1) I called Prosper, and they did say that they changed the formatting of their tax reporting because they switched to a new vendor.  It's a shame they made this change as previously they would provided two 1099-Bs, one for short term losses, and the other for long-term losses. This made reporting a snap as regulations allow you to aggredate your ST and LT losses in these situations as "Var-l" or "var-S" My software Taxcut allows me to do this in the worksheet. 
2) If you have more than one account, they didn't tell me that they aggregated all of the accounts into one consoldated reporting form.  I have a NSR account with a totally different log-in, but they only sent me tax forms in my other individual account. 
3) I am drawing down my Prosper account, not only for subpar performance, but also they broke my number one rule- if the tax reporting burden is too high, it's not worth my time.  I was able to copy all of the data from their 1099-B forms and paste them into a spreadsheet so that I didn't have to manually calculate the cost-basis for 2500 notes individually. As other readers noted, the aggregated sale of ST and LT losses was hidden at the bottom of a page in the 1099-B form. They should have put that data at the front.