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[xraider]

I had losses of almost exactly my "gain" that year, so didn't report any of it, relying on Prosper's representation that it wasn't reporting "gains" of over $600.  WRONG.  So, I'll be reporting my losses this year.......

So, I'll print out the defaults from 2008 and send them in to the IRS.  Stay tuned.....  And nominate for lobby.

[Urbi_et_Orbi]

Has anyone else received similar?

Are deadbeat borrowers receiving similar notices regarding their gains - or is it just lenders?

[112233]

I have a 2008 Prosper 1099-INT for $191.

I dont recall if they sent one to me in the mail or if there is a digital copy on their website. Im looking at a PDF that a I requested from a tax company with all my 1099s and 1098s in it.

[112233]

yes, I have a 2008 Consolidated Form 1099 for $191 in the history/statements section of Prosper's website

[God-Father]

Second for lobby

[ira01]

Interest is supposed to be reported when it is over $10.  In discussions here and I believe on .com, several of us told Prosper that its asserted use of the $600 threshold was wrong.  But I clearly remember that Prosper was not following its stated $600 rule -- but it was very hit and miss.  Some of us got a 1099-INT for small amounts, while others didn't get them for larger amounts.  Not that such inconsistency is anything out of the ordinary for Prosper, of course.   

[pioneer11]

Didn't we all know that we are supposed to report Prosper income on schedule B?

[triad]

The IRS rule is you knew you were to report it even if you didn't get a 1099, so failing to list it is your fault.
Figuring it was wash and omitting your losses is going to open you up to requests for more information before the are necessarily accepted.

[mothandrust]

Doesn't interest (Schedule B) and capital losses (Schedule D) get taxed at different rates?

Would love it if deadbeat borrowers were (at least) getting 1099'ed for all their ill-gotten profits.

[Mark12547]

Doesn't interest (Schedule B) and capital losses (Schedule D) get taxed at different rates?

Interest and short term capital losses are at the same rate. Long term capital losses are at a lower rate.

It gets more complicated than that because first short term gains are offset by short term losses, and long-term gains are offset by long-term losses, and then if there is an excess of one and shortage of the other, the two cross-offset.

[cubbiesnextyr]

Doesn't interest (Schedule B) and capital losses (Schedule D) get taxed at different rates?

Interest and short term capital losses are at the same rate. Long term capital losses are at a lower rate.

It gets more complicated than that because first short term gains are offset by short term losses, and long-term gains are offset by long-term losses, and then if there is an excess of one and shortage of the other, the two cross-offset.

And don't forget the max capital loss you can take per year is $3K (which should be raised since it hasn't since 1986 I believe).

[ira01]

Doesn't interest (Schedule B) and capital losses (Schedule D) get taxed at different rates?

Interest and short term capital losses are at the same rate. Long term capital losses are at a lower rate.

It gets more complicated than that because first short term gains are offset by short term losses, and long-term gains are offset by long-term losses, and then if there is an excess of one and shortage of the other, the two cross-offset.

And don't forget the max capital loss you can take per year is $3K (which should be raised since it hasn't since 1986 I believe).

To be clear, $3K is only the maximum capital loss that can be used to offset regular income.  You can take ALL capital losses to the extent that you have capital gains -- and then up to $3K more.

[The_Cat]

Doesn't interest (Schedule B) and capital losses (Schedule D) get taxed at different rates?

Would love it if deadbeat borrowers were (at least) getting 1099'ed for all their ill-gotten profits.

One should be sure to make the IRS aware of this potential source of income when responding.

[cowdog]

Doesn't interest (Schedule B) and capital losses (Schedule D) get taxed at different rates?

Would love it if deadbeat borrowers were (at least) getting 1099'ed for all their ill-gotten profits.

One should be sure to make the IRS aware of this potential source of income when responding.

With $45,551,624 in charge-offs, according to Prosper's own performance data, it's worth several million to the IRS.

[ira01]

Doesn't interest (Schedule B) and capital losses (Schedule D) get taxed at different rates?

Would love it if deadbeat borrowers were (at least) getting 1099'ed for all their ill-gotten profits.

One should be sure to make the IRS aware of this potential source of income when responding.

With $45,551,624 in charge-offs, according to Prosper's own performance data, it's worth several million to the IRS.

Doubtful.  That money hasn't been forgiven -- the debtors still owe someone (JDBs for early loans, lenders for later loans, and Prosper for 3.0 loans), so it isn't income.  Moreover, IIRC, debtors aren;t responsible for taxes on even forgiven debt if they are insolvent, which many of them no doubt are.