By performing an Excel lookup from the 1099-B data to the Foliofn, you could essentially determine your discount/premium for each Foliofn note, then add or subtract it against the outstanding principal at the time of sale. For any note that isn’t found in the look up to the Foliofn purchases would more than likely have been acquired directly. Those notes would not need to be adjusted by any net (lookup results column could just reflect zero for these notes). You could then use this spreadsheet to support your cost basis numbers. It goes without saying you could total these discounts/premiums up in the same long-term/short-term way that the 1099-B is broken up in as you will have that information in the Excel file.

I hope that makes sense and helps!

Thanks for the information. Ok one step closer, I do see the ‘Principal Balance at Sale’. In your opinion (not tax advise) is there a quick way to figure out this principal against the net of premium or discount without looking at individual notes one by one? I am just looking for a total figure and I will attach the detail printout to my tax filing.

Based on the 1099-B I received in 2012 for notes I sold as I did not sell any notes during 2013, I was provided a 1099-B that included the principal balance of each note at the time of sale. This was totaled at the bottom and broken into long-term and short-term amounts. Generally speaking, your cost basis is the outstanding principal balance of the note sold for notes in which invested directly. For those that carry a premium or discount from purchase on Foliofn you will need to net the principal balance against those premiums or discounts. All service fees are already net against proceeds or interest income, so you will not need to account for those separately.

Hope this helps and let me know if you have any other questions.

In my past experience (I sold a good sized amount of notes in 2012) I reported everything grouped by tax treatment. All the long-term gains, long-term losses, short-term gains, and short-term losses were grouped separately and reported that way on Form 8949. Ultimately this gave me four separate totals which I input from all my Foliofn trades. Additionally, I scanned a copy of the 1099 from Lending Club and sent it in with my return to substantiate my numbers further.

Hope this helps!

In 2013 I sold many notes. Now my 1099B is about 50 pages long.

Do I have to report every single trade on schedule D?? or can I just put a
summary with the total?

thank you so much