Prosper provides a year-end investor statement to all active investors, and may provide a Consolidated Form 1099 to investors and tax authorities, depending on the investor’s activity during the calendar year. If you are subject to 1099 tax reporting, your tax forms will be available on the “Your Name > History > Statements” page by January 31 of the year following the calendar year in question.
You will be provided a Form 1099-OID in each tax year that you have interest income on Notes originated in 2009 or later. Income shown on Form 1099-OID will be reported to the Internal Revenue Service and State tax authorities in the event applicable thresholds established by them are met. This form details income reported on Notes that are subject to OID tax reporting. See Questions Related to OID Tax Reporting below.
If you sold Notes on the Folio Investing Note Trader platform during the tax year, you will be provided a Form 1099-B from FOLIOfn that shows your sale date, proceeds, and cost basis, broken down into short and long term gains. You will receive a Form 1099-B from Prosper for any Notes that were charged off.
You will be provided a Form 1099-MISC in each tax year that you receive borrower late fees, referral awards, bonuses, incentives, and so forth. Income shown on Form 1099-MISC will be reported to the Internal Revenue Service and State tax authorities in the event applicable thresholds as established by them are met.