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How often is my return updated?
All returns are updated Monthly on the first of the month.
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Are the earnings from my investments taxable?
Yes. If you receive over $10 in earnings, you’ll receive an annual tax statement.
You can access your statements by viewing your account History and selecting Statements. Tax statements are available every year by January 31 and are also sent via email to the email address associated with your Prosper account.
We recommend consulting with a tax advisor if you have additional questions.
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How are my losses categorized on the tax forms?
Charge-offs, recoveries, and gross proceeds from any bad debt sale to a third party will be reported to investors in a year-end investor statement and on tax form 1099-B. In the case of a debt sale, the sales price can be compared to the cost (or other basis) to calculate the net amount of gain or loss. The summary table at the bottom of the Form 1099B provides short- and long-term data. Investors are encouraged to consult their tax advisor to determine their tax basis on loans sold to debt buyers.
Delinquent (late) loans which have not yet been sold to a debt buyer will have no impact upon taxes until further action on these loans takes place.
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Where can I access my tax forms?
If you are subject to 1099 tax reporting, your tax forms will be available in the My Account section of your Prosper account. To see the available forms, choose History,then Statements.
If you would like to receive a paper copy of your tax forms, please contact customer support.
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What happens if a borrower files for bankruptcy?
When we receive notice that a borrower has filed bankruptcy, we stop all automatic monthly payments on any related loan(s) and defer any other collection activity. Investors who committed funds to the loan can view the status update by reviewing the Note Details through their online account.
We then determine whether we have a basis to object to the inclusion of the debt in any bankruptcy action (e.g., based on the time between loan origination and bankruptcy filing).
If the proceeding is a Chapter 7 bankruptcy filing seeking liquidation, we attempt to determine if the proceeding is a “no asset” proceeding, based on instructions we receive from the bankruptcy court. If the proceeding is a “no asset” proceeding, we take no further action and assume that no recovery will be made on the borrower loan. In all other cases, we file a proof of claim involving the borrower.
If we can recover any funds from the bankruptcy, we’ll apply the amount received as a payment toward the remaining balance of the loan. If we are unable to recover any funds, this would be a loss for the investors who funded the loan.
If you would like to learn about the risks of investing in Notes, read our Prospectus, an official document detailing all the key information for the investments we offer. You can find the Prosper Prospectus at the bottom of any page at www.prosper.com.
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What happens if a borrower passes away during repayment?
If a borrower passes away during the repayment of their loan, we work with the executor of the estate to recover any unpaid amounts.
Depending on the size of the estate and the other liabilities, we may not be able to recover the outstanding amount of the loan. If the estate does not include sufficient assets to repay the outstanding loan in full or the estate allocates its assets to other liabilities, we will treat the unsatisfied portion of the loan as charged-off with zero value.
In addition, if a borrower passes away near the end of the loan’s term, it is unlikely that any further payments will be made on corresponding Notes because the time required for the probate of the estate may extend well beyond the loan maturity date.
If we can recover any funds from the estate, we’ll apply the amount received as a payment toward the remaining balance of the loan. If we are unable to recover funds from the estate, this would be a loss for the investors who funded the loan.
If you would like to learn about the risks of investing in Notes, read our Prospectus, an official document detailing all the key information for the investments we offer. You can find the Prosper Prospectus on our website at the bottom of any page at www.prosper.com.
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Where can I download data about loans through Prosper?
Prosper has several data sources for investors to analyze historical loan performance on the platform. Any user with a valid Prosper Account is able to set up an API username and password to access and download loan performance and credit attribute data at the loan level.
Investors who wish to analyze loan performance on a month‐to‐month basis can receive the “Loan Level Monthly” file upon request after signing a Data License Agreement. This file requires a large‐text viewing format and advanced statistical analysis software to download and open. Please contact us at invest@prosper.com to request the data license agreement.
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How can I tell if the payment toward my Note is past due?
You can view the status of your Notes by signing into your online account and selecting the Note ID you’d like to review.
We label the payment status of loans the following ways:
- Current – meaning the borrower is up-to-date on their payments
- 1 month late – meaning the borrower is at least 1 or more days late on their last payment
- 2 months late – meaning the borrower has not satisfied their last 2 monthly payments
- 3 months late – meaning the borrower has not satisfied their last 3 monthly payments
- Charge-Off – meaning the borrower has not made a payment in 4 months.
Read more about charge-offs.