Author Topic: LC Tax Documents available now!  (Read 20685 times)

yojoakak

  • Hero Member
  • *****
  • Posts: 763
    • View Profile
    • Check out my Greasemonkey/Tampermonkey script for LendingClub here
    • Email
LC Tax Documents available now!
« on: January 31, 2013, 06:22:28 AM »
https://www.lendingclub.com/account/taxDocuments.action

Mine's 100+ pages long.


Still waiting on Foliofn, though.
« Last Edit: January 31, 2013, 06:28:01 AM by yojoakak »

daniel2023

  • Newbie
  • *
  • Posts: 27
    • View Profile
    • Email
Re: LC Tax Documents available now!
« Reply #1 on: January 31, 2013, 08:45:54 AM »
Yikes... mine's a measly 5 pages.

So, I see box 7 is empty... does that mean LC has not including their servicing fees in the calculation?

Keltset

  • Full Member
  • ***
  • Posts: 176
    • View Profile
Re: LC Tax Documents available now!
« Reply #2 on: January 31, 2013, 10:42:47 AM »
Folio docs are in my account... Taking a look to see how these measure up to what I was expecting to see in both the LC and Folio accounts.

edit: Interestingly no 1099-B in the LC account for the charge-off's as indicated here: http://www.lendingclub.com/kb/index.php?View=entry&EntryID=240
« Last Edit: January 31, 2013, 10:51:58 AM by Keltset »

AmCap

  • Full Member
  • ***
  • Posts: 248
    • View Profile
    • Email
Re: LC Tax Documents available now!
« Reply #3 on: January 31, 2013, 11:25:17 AM »
Folio docs are in my account... Taking a look to see how these measure up to what I was expecting to see in both the LC and Folio accounts.

edit: Interestingly no 1099-B in the LC account for the charge-off's as indicated here: http://www.lendingclub.com/kb/index.php?View=entry&EntryID=240

Yes I saw that- also there doesn't seem to be any tracking of your adjusted basis in a note that you sold. I haven't had much time but I would think that would be problematic for some people who should have OID included in their basis.  Last year prosper calculated my adjusted basis for me, though its anybody's guess if it was correct.

On my folio 1099 they give me my sale price and the par value of the note at the time of sale. I think that might  lead people to conclude that they can deduct the difference between the sale proceeds and par value (which for distressednotes in particular would be a huge discrepancy).

Also, and this slipped my mind earlier, but basis in debt instruments generally isn't reported to the IRS. That is not the case for stock sales.  I'm not sure why that is, but in any event LC would be in a better position to calculate the basis than most investors.

New Jersey Guy

  • Hero Member
  • *****
  • Posts: 914
  • Hell Yea it's a Hemi!
    • View Profile
    • Email
Re: LC Tax Documents available now!
« Reply #4 on: January 31, 2013, 12:07:44 PM »
"I think that might  lead people to conclude that they can deduct the difference between the sale proceeds and par value (which for distressed notes in particular would be a huge discrepancy). "

Agreed!  I'm not sure what we're supposed to do with that!  Since all my notes are distressed, that statement makes it look like I had huuuuge losses!  I don't know why the acutal selling price (and difference) aren't listed on that.

So what do we do with this thing?  Are we supposed to print all those pages and turn them over to the accountant even though it's not a correct summary?   Or, do I print them up along with my Excel records which shows the correct short term gains?

What a nightmare.  It looks like lots and lots of printing for statements that don't actually summarize much at all.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

SarahV

  • Guest
Re: LC Tax Documents available now!
« Reply #5 on: January 31, 2013, 12:27:08 PM »
Looking at the numbers given me by Lending Club and Folio, it seems like they want me to pay tax on an amount nearly double my actual profits in that time period. And if it's all categorized as "short term gains" I'm going to pay something like 75% of my actual gains in tax. Whuh?

AmCap

  • Full Member
  • ***
  • Posts: 248
    • View Profile
    • Email
Re: LC Tax Documents available now!
« Reply #6 on: January 31, 2013, 12:40:10 PM »
Looking at the numbers given me by Lending Club and Folio, it seems like they want me to pay tax on an amount nearly double my actual profits in that time period. And if it's all categorized as "short term gains" I'm going to pay something like 75% of my actual gains in tax. Whuh?

Sarah did you sell distressed or performing notes? 

SarahV

  • Guest
Re: LC Tax Documents available now!
« Reply #7 on: January 31, 2013, 01:01:06 PM »
I'm in a FolioFn state so all notes were bought on Folio and I sold quite a few as well.

yojoakak

  • Hero Member
  • *****
  • Posts: 763
    • View Profile
    • Check out my Greasemonkey/Tampermonkey script for LendingClub here
    • Email
Re: LC Tax Documents available now!
« Reply #8 on: January 31, 2013, 03:24:37 PM »
Agreed!  I'm not sure what we're supposed to do with that!  Since all my notes are distressed, that statement makes it look like I had huuuuge losses!  I don't know why the acutal selling price (and difference) aren't listed on that.

So what do we do with this thing?  Are we supposed to print all those pages and turn them over to the accountant even though it's not a correct summary?   Or, do I print them up along with my Excel records which shows the correct short term gains?

What a nightmare.  It looks like lots and lots of printing for statements that don't actually summarize much at all.

There's some additional information in the "Year-end Summary - Notes Sold in 2012" report (just above the tax documents on My Account) that might help you ferret out those numbers.

https://www.lendingclub.com/foliofn/yrEndTraderStatement.action?start_date_trader_statements=01/01/2012


I can't remember if they use Outstanding Principal, or Outstanding Principal + Accrued Interest (or something else?) for those "Par Value" columns. Which one would make more sense?

EDIT: It looks like they use Outstanding Principal + Accrued Interest. Are you allowed to include accrued but unpaid interest in a loss? The 1099-B seems to use just the Outstanding Principal.
« Last Edit: January 31, 2013, 03:49:11 PM by yojoakak »

desk8149

  • Newbie
  • *
  • Posts: 11
    • View Profile
Re: LC Tax Documents available now!
« Reply #9 on: January 31, 2013, 03:56:34 PM »
The LC 1099-OID does not include the charge off loans so the amount is too high.  I understand we need a separate 1099-B to be able to claim the charge offs.  When will that be available?  I am looking to submit my tax return ASAP for a refund.  Thanks.

SeanMcD

  • Full Member
  • ***
  • Posts: 147
    • View Profile
    • Email
Re: LC Tax Documents available now!
« Reply #10 on: January 31, 2013, 04:24:51 PM »
So, I see box 7 is empty... does that mean LC has not including their servicing fees in the calculation?

Nothing for FolioFn fees either.

AmCap

  • Full Member
  • ***
  • Posts: 248
    • View Profile
    • Email
Re: LC Tax Documents available now!
« Reply #11 on: January 31, 2013, 04:34:11 PM »
Ok we are in tax FUBAR land at this point.  I can't cite chapter and verse, but youshould be able to include investment fees paid into your basis. Also,  your adjusted basis in each note is your cost basis plus OID less payments received.  Any number other than that isn't correct, either for purposes of calculating bad debt deductions or gain/lloss on a trade.

Peter, you have contacts at LC right?  Is this worth bringing to their attention?

Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 756
    • View Profile
    • Lend Academy
    • Email
Re: LC Tax Documents available now!
« Reply #12 on: January 31, 2013, 04:59:48 PM »
I can certainly bring it to the attention of LC but they have been less than open in the past to any discussion about taxes. As AmCap rightfully points out there is no standard way to report.

You can read my tax post from 2012, I will be doing a 2013 version of this post with more detail in the next few weeks but you can read through some of the comments here from CPA's:
http://www.lendacademy.com/a-guide-to-filing-your-lending-club-and-prosper-taxes/

The bottom line is there is no agreement on how to report this. But to do it right you should make sure to deduct your losses otherwise you will be paying for more in taxes than necessary. Once again the 1099-OID is not your friend.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

Computerizer

  • Newbie
  • *
  • Posts: 26
    • View Profile
Re: LC Tax Documents available now!
« Reply #13 on: January 31, 2013, 06:44:20 PM »
By the way, according to this page, 1099-Bs do not need to be sent out to us by institutions until February 15th, though most other 1099s and W-2s are of course due January 31st.

yojoakak

  • Hero Member
  • *****
  • Posts: 763
    • View Profile
    • Check out my Greasemonkey/Tampermonkey script for LendingClub here
    • Email
Re: LC Tax Documents available now!
« Reply #14 on: January 31, 2013, 09:31:03 PM »
So, I see box 7 is empty... does that mean LC has not including their servicing fees in the calculation?

Nothing for FolioFn fees either.

LendingClub's service fee for the year, and the charge offs, can be found on the Year End Summary (linked from the Statements page).

Foliofn's fees can be found on their Year-end Summary (linked from the bottom of the My Account page.)


It would have been nice if these had been included on the 1099, but remember: your numbers don't necessarily have to match what's been reported, they just have to make sense and be justifiable if the IRS ever audits you.

(Of course, that begs the question: if the numbers don't match is that more likely to trigger an audit?)
« Last Edit: January 31, 2013, 09:34:42 PM by yojoakak »