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Fully Paid Lending - Where to report on US Tax Return?

Discussion in 'TSLA Investor Discussions' started by Yonki, Apr 3, 2017.

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  1. Yonki

    Yonki Member

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    It's time to pay the piper for all that interest the shorts were kind enough to give me last year. Does anyone know where we're supposed to report it?
     
  2. Yonki

    Yonki Member

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    Never mind, it's 1099-MISC.
     
  3. neroden

    neroden Happy Model S Owner

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    Other Income. (Dunno why.) I think it's also considered investment income for purposes of things which care about that (like the 3.8% tax and investment expenses and investment interest paid and so on.), but don't quote me on that!
     
  4. mr10012

    mr10012 Member

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    I think you are correct. I am trying to figure out how to mark that 1099-MISC as Investment Income in Turbotax, so that it will offset it against my investment expenses. Anyone knows?
     
  5. neroden

    neroden Happy Model S Owner

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    Heh. That's why I do my taxes on paper.
     
  6. cpa

    cpa Active Member

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    You do not specify which box this income appears on the 1099-MISC.

    If it is indeed interest income, then report the income on Schedule B so that it gets included with your investment income for the NIIT. At least that is what I would do for a client. And, I would show the income going in and out on line 21 with a description like "interest income reported on Schedule B."
     
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  7. SteveG3

    SteveG3 Active Member

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    Wondering what brokerages pass this money to the account holder. Whose your brokerage? I don't get payed a dime for that.
     
  8. adiggs

    adiggs Active Member

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    I use Fidelity and participate in their Fully Paid Lending Program. As of today, Fidelity doesn't have any of my shares borrowed to lend back out. It seems the appetite/demand for short positions has shrunk as the stock price has rallied, and Fidelity doesn't need me any more to satisfy demand.
     
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  9. Yonki

    Yonki Member

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    Fidelity pulled my shares out of the lending pool mid-March, but they loaned them back out (at 0.75%) about a week ago.
     
  10. tander

    tander Active Member

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    If you show it both on Schedule B (which would go to line 8a?) and also on 21, wouldn't that duplicate it? I'm putting it on Sched B and 8a, but I'm guessing as long as you report it either way they won't mind too much.

    Also OP, thanks for starting this thread, figured I'd google the question just to double check, and this thread popped up in the top ten.
     
  11. cpa

    cpa Active Member

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    Perhaps I was not clear; let me restate: You make two entries on line 21:

    XYZ company...................................................21,500
    Less, amount reported on schedule B............-21,500

    Line 21 nets to zero. However, the supplemental schedule that prints when there are more than one entry on line 21 will reflect both amounts that zero out.

    So, no; you are not duplicating the income.
     
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  12. Yonki

    Yonki Member

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    It's under "3 Other Income".

    On what form is this line 21? Can't find it.

    And thanks for you help (unless the "cpa" moniker is ironic :) )!
     
  13. neroden

    neroden Happy Model S Owner

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    Form 1040, "Other Income". You report all kinds of weird stuff here: fees earned as an executor of a will, gambling winnings, anything which doesn't go somewhere else but also isn't a gift or inheritance.
     
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  14. Yonki

    Yonki Member

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    Got it. Didn't change what I gotta pay, though. :eek:
     

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