Percent: Tax Implications
Most investment opportunities on the platform, except for Limited Partnerships, are taxed as ordinary income. Returns for most offerings are usually calculated using simple interest unless otherwise specified in the offering details.
Investors receive a consolidated 1099-INT form, which reports gross returns. Additionally, you’ll receive a separate statement breaking down any applicable fees, which can help you and your tax professional determine the best tax strategy. For investors participating in Limited Partnerships, you may instead receive a K-1 statement per Limited Partnership.