Author Topic: Lending Club - default loans - H&R Block  (Read 1951 times)

Yankuba

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Lending Club - default loans - H&R Block
« on: January 31, 2015, 12:52:31 PM »
Hello,

I'm using the H&R Block software and am not 100% sure where to enter my Lending Club loans that defaulted. Lending Club provided me with a statement of my defaulted loans with the purchase date of each loan, default/disposition date of each loan, original cost of each loan and the loss per loan. The Lending Club statement that contains this information states "Note Information to Report Charged-Off Notes Have Not Been Reported to IRS on 1099-B." The statement is NOT a 1099-B - Lending Club sent me one of those for a loan recovery.

So I'm using H&R Block's tax software and entered each defaulted loan in the section titled "Sale of Stocks and Other Assets (1099-B)." The data I entered carried over to IRS Schedule D (Capital Gains and Losses) as well as IRS Form 8949 (Dispositions of Capital Assets). My return increased each time I entered a defaulted loan and everything appears correct in the IRS forms, but since these weren't actual SALES of loans (because they DEFAULTED worthless) I wasn't 100% sure I was doing it correctly. But the math and return appear to be correct.

Thanks,
Yanks