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[christoofar215]

And finally, after all these years, Prosper puts in the cost basis and includes recovery amounts in the consolidated 1099.

It only took a half decade for them to figure out how to state it.

[xraider]

Really?  There is no cost basis on mine. 

[Xenon481]

I don't have a 1099 from Prosper for 2011 (all of my notes were already charged off years ago), but my December 2011 Lender Statement says that my Principal Value of Active Notes is -$1.60. Yes, it says that the current value of the notes that I have is NEGATIVE.

[pioneer11]

Really?  There is no cost basis on mine. 

Not on mine either.  The sale price was $2.20 so I will just call the cost $0 and be done with it.

[xraider]

My sale price is about $30 because of the bankruptcy oops.  My accountant doesn't like to deal with Prosper so I'll probably pay the additional tax.

Just another example of why Prosper sucks.

[zelonewolf]

Mine has a 1099-OID with $400 in the OID box, and basically nothing else.  Where the heck do I put this in my taxes?

[cubbiesnextyr]

And finally, after all these years, Prosper puts in the cost basis and includes recovery amounts in the consolidated 1099.

It only took a half decade for them to figure out how to state it.

That's not it at all.  It's a new requirement for people who issue 1099-B's.  They have to list the cost basis of anything purchased in 2011 and beyond.  There's a new form you'll have to file along with Sch D if you sell something and are going to list a basis other than the one on the 1099.

[cubbiesnextyr]

Mine has a 1099-OID with $400 in the OID box, and basically nothing else.  Where the heck do I put this in my taxes?

http://www.irs.gov/publications/p550/ch01.html#en_US_2011_publink10009983

[Oak_Hill_Fire]

My sale price is about $30 because of the bankruptcy oops.  My accountant doesn't like to deal with Prosper so I'll probably pay the additional tax.

Just another example of why Prosper sucks.

Agree wholeheartedly!

[littlehouse]

Last year I had three loans that were in charge-off appear on my 2010 1099-B.  The sale or exchange date on each was in 2010.  When I checked my list of "Loans in Charge-off" online I saw that one was a loan that was discharged in bankruptcy in 2010 and the other two were paid off in full in 2010.  Does this make sense?

This year my 2011 1099-B lists 11 loans with sale or exchange dates ranging from May 2008 to Sept. 2011.  Does it make sense that sales or exchanges from previous years appear on the 2011 1099-B?  Also, when I look up these loans on my list of "Loans in Charge-off" all of the ones from previous years show a status of "Charge-off, in collections" with no indication of them having been sold, discharged in bankruptcy or otherwise exchanged.   

[big-al]

And finally, after all these years, Prosper puts in the cost basis and includes recovery amounts in the consolidated 1099.

It only took a half decade for them to figure out how to state it.

That's not it at all.  It's a new requirement for people who issue 1099-B's.  They have to list the cost basis of anything purchased in 2011 and beyond.  There's a new form you'll have to file along with Sch D if you sell something and are going to list a basis other than the one on the 1099.

I think you'll find that you have to file Form 8949 if you report any sales, whether or not basis is correct.  You may have up to 6 8949s.  That info gets totaled on Schedule D.  There is no place on the new Schedule D to list individual sales.

[mothandrust]

This year my 2011 1099-B lists 11 loans with sale or exchange dates ranging from May 2008 to Sept. 2011.  Does it make sense that sales or exchanges from previous years appear on the 2011 1099-B? 

I only have one loan like this: the eandr123 loan which was charged-off in November 2010.  But since he made several payments in 2011, they seem to be counting the charge-off as a "sale" (except it was never actually sold to anyone) and then the amount received (less of fees under Lender Accounting) is equal to what I received in 2011.

On some payments, they charged me both a "Service Fee" and a "Collection Fee" (of 27%) which is not what I agreed to when I bid on the loan originally.  Bad Prosper, bad.

[littlehouse]

I only have one loan like this: the eandr123 loan which was charged-off in November 2010.  But since he made several payments in 2011, they seem to be counting the charge-off as a "sale" (except it was never actually sold to anyone) and then the amount received (less of fees under Lender Accounting) is equal to what I received in 2011.

I have ten of them.  I checked most of them and those I checked all made one or more collection payments in 2011.  The "sale" amount stated on the 1099-B on most seems almost, but not quite, equal to the total interest payments minus fees.  Is this how interest from in-collection loans is reported and taxed - as short and long term capital gains?  Since I am down now to only two non-defaulted remaining loans I can see that these interest payments are not being included on the 1099-INT.  The amount of interest on that form is much smaller than the total on the 1099-B.

[DCS]

The recoveries showing up on the 1099-B confused me.

(1) In previous years, I'd reported recoveries made on loans for which I had already claimed the loss as "Other Income," per TurboTax's handling of recoveries of bad debt.  Was this the wrong thing to do?  Prosper seems to be calling the recoveries long-term capital gains now - huh?  A recovery is now a broker transaction?

(2) None of the recoveries Prosper lists on the 1099-B appear to match actual transactions in my Prosper account history. In fact, they list one of these non-account-matching transactions for the same loan on the same date and of the same amount TWICE?!?!?!

WTF?  I feel like Prosper made up a bunch of numbers for my 1099 this year.  Am I missing something?

[kenL]

In fact, they list one of these non-account-matching transactions for the same loan on the same date and of the same amount TWICE?!?!?!

I got a few of those doubles too. I'm waiting to see if they issue any corrections.