Post by jonboyp2p on Nov 17, 2017 10:10:44 GMT
I don't have an earned income so I can make a lot of P2P profit before incurring tax.
I'm wondering if there is a play where I can buy FS loans on SM shortly before they're due, taking the "tax hit" of the entire accrued interest which is no skin off my back but a 20% liability to someone else.
I see plenty of -0.40% discount stuff with 45 days to go listed on the SM - how much of this is driven by people wanting to offload the tax liability, and how much because they want to offload the risk of non-repayment of principal to a sucker and bank the interest?
I understand all interest and principal is paid to whoever holds the loan at completion. But when does the borrower typically pay this - at completion or gradually? If it's all paid at the end then buying near-term SM loans is a hell of a risk.
Are there any other platforms where I can exploit this advantage of my tax position?
I'm wondering if there is a play where I can buy FS loans on SM shortly before they're due, taking the "tax hit" of the entire accrued interest which is no skin off my back but a 20% liability to someone else.
I see plenty of -0.40% discount stuff with 45 days to go listed on the SM - how much of this is driven by people wanting to offload the tax liability, and how much because they want to offload the risk of non-repayment of principal to a sucker and bank the interest?
I understand all interest and principal is paid to whoever holds the loan at completion. But when does the borrower typically pay this - at completion or gradually? If it's all paid at the end then buying near-term SM loans is a hell of a risk.
Are there any other platforms where I can exploit this advantage of my tax position?
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