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I'm in the US and playing with investing with crowdfunded debt like miventure. (I'm not affiliated with them, just an example)
When I end up getting yields from this I think it ends up in my e-wallet on the platform, and then I transfer it to my bank if/when I want.
How and when will my taxable event happen? Will it happen when the interest is paid? Or when I take the money off the platform?
If one of the businesses goes under, do I take a capital loss of my original debt share?
How and when will my taxable event happen? Will it happen when the interest is paid? Or when I take the money off the platform?
When the interest hits the platform you have income. This would be treated the same as if you invested in a bond that paid you interest periodically. Of course if this was done as part of an IRA, that would be income within the retirement account, in which case the income would either be tax deferred or tax free.
If one of the businesses goes under, do I take a capital loss of my original debt share?
I don't know how this is handled on the tax forms.
