What are the tax implications of a Wunder investment?

This information must not be interpreted as tax advice. Wunder does not and cannot provide tax advice. Because each individual’s tax situation is different, the tax implications specific to your situation may be unique. For guidance on tax implications of Platform Notes, please consult your tax professional.

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. To find your tax documents, 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.

 

Self-Directed IRA's

If you have committed an investment using a self-directed IRA account that is held with STRATA Trust Company, then STRATA will manage your tax reporting and furnish you with any documentation needed to properly report your investment earnings.

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