Does Percent issue 1099-B for investment losses?

If a charge-off occurs on a note you hold through Percent, you will not receive a Form 1099‑B. Form 1099‑B is generally issued by a broker when it facilitates the sale or redemption of securities, and in this structure, the issuer of the notes on Percent is a Series SPV, with Percent not acting as a broker‑dealer effecting a reportable transaction. As a result, Percent does not issue Form 1099‑B for these investments.

Instead, Percent will provide a statement reflecting the charge-off amount, which you can share with your tax advisor as documentation of a potential loss. Percent does not provide tax advice, and investors may wish to review IRS guidance on “bad debt deductions,” including how such losses may be treated as short‑term capital losses and how notes purchased on the platform may be characterized as nonbusiness bad debts if written off during the workout process.

The charge‑off communication and/or your year‑end account statements generally provide sufficient evidence for a tax professional to evaluate and document your loss position.