I reported 1099 Int income from Patch of Land real estate crowdfunding. I also received a principal loss statement and I'm not sure how to report the loss. Please advise.

[lourendon]

I invested in a crowdfunding construction loan through Patch of Land and the loan was not fully repaid. My portion of the principal loss was $342. I reported 1099-INT interest on my return and I need to know how to deduct the loss.

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[JulieR]

You'll report this loss on Schedule D of your return in the Personal Section of your return, under Personal Income/  Investment Income/ Stocks, Mutual Funds, Bonds, Other.  You will treat the investment like a sale.  The proceeds will be the amount you of money you received as a return of your investment.  The Cost Basis will be the sum of money you initially invested.

Please comment if you need additional help with this.

[Drewrru]

I am confused. I was a limited partner of a real estate crowdfunding investment. My investment was $25,000. I view that as the cost basis. The property was sold recently and I made a nice profit. I am trying to determine if the net gain on the sale of the property, as reflected on the Schedule K-1, includes the initial investment.If not, where on the K-1 is the initial investment reflected?

Michael Weinstein

Pittsburgh, PA