This is the first year that I've received a tax statement from lending club and I am a little confused.
In "Block 1" it shows almost 1,400 dollars in interest. In the instructions it says to "report that as interest income on your tax return."
Ok, so no questions there.
However, my Lending Club account did not go up by 1,400 dollars in 2012. I perhaps received that much in interest, but that was before you take into account the loan defaults that significantly reduced the overall gain. There is no record of that on the form 1099-OID.
Any LC veterans out there know how that works? Thank you in advance.