How do I report taxes as a Lender?
After the end of each calendar year, Lending Loop will provide you with a summary of your income interest and capital losses earned through the platform for you to include on your personal tax return. All Lenders will receive an Earnings Statement, and Lenders who earn $50 in interest from Notes issued after October 2016 during the calendar year will also receive a T5 statement.
It is your responsibility to report this information to the CRA. While you are purchasing notes through the platform, you are taxed as an individual on the profits earned from the issued note. As an individual, interest income is taxed at your marginal rate. Should one of your notes default, any lost principal would usually be considered a capital loss for tax purposes, although this could change depending on your personal tax situation.
We recommend that you consult with an accountant or tax advisor in order to determine how lending applies to your personal tax situation.
Issued to all Lenders and contains all earnings received during a calendar year.
Issued to all Lenders who earned $50 or more in interest during the calendar year on Notes issued after October 2016.