Generally, returns from a Wunder investment will simply be taxed as income. Interest paid under the terms of Wunder platform notes is treated by the IRS as OID (original issue discount). This is because interest is not “unconditionally payable” under the terms of the note. If you'd like to learn more about the calculation of OID amounts, you can learn more here: https://www.irs.gov/pub/irs-pdf/p1212.pdf.
At the end of each year, all Wunder fund investors will receive a 1099-OID stating their taxable earnings. Box 1 is the only amount that needs to be reported for tax purposes. These tax documents can also be accessed from within your Wunder account. If you navigate to the "Settings" tab (located at the top of the webpage), select your investor (typically displayed as your full legal name), and then navigate to the documents tab, you'll find your tax documents.
Wunder can facilitate investments from self-directed IRA accounts that are held by STRATA Trust Company, a leading national IRA custodian that specializes in tax-advantaged investments. Naturally, an investment placed from self-directed IRA will be treated different with regard to taxable earnings.