I have been investing in peer to peer for about 6 months. I have bought and sold a number of notes on Lending Clubs secondary market. Does anyone have any experience with figuring out the taxes on these loans? Specifically I am trying to figure out what my cost basis is on notes that I have bought and sold.

Do I need to figure in the face value of the note when I bought and sold it? Or is my cost basis simply the purchase price for the note. Any help would be appreciated.