Each year, by January 31st, NextSeed will notify debt investors when their 1099 tax forms are ready to be downloaded from their NextSeed Account Center. If you received debt payments on your investments, you will receive a 1099-INT/1099-B as applicable.
Each investor agrees to treat the debt investment agreements that they invest in on NextSeed as “debt instruments” (as defined in U.S. Treasury regulations) for U.S. federal income tax purposes. Returns from your NextSeed investments are reported as interest income for the applicable year.
Revenue sharing notes are classified as a contingent payment debt instrument since the interest on revenue sharing investments cannot be calculated until actual payments are made. The interest calculation for revenue sharing notes is done at the end of the year when all payments for that year have been made.
Each year, by March 15th, NextSeed will notify equity investors when K-1 tax forms are available to access either through their NextSeed Account Center or by mail. Each investor agrees to treat the equity investment agreements that they invest in on NextSeed as “equity instruments” for U.S. federal income tax purposes. Any returns from your NextSeed equity investments will report your share of the income, credits and deductions.
Please consult your tax advisor if you have additional questions regarding taxes.
NextSeed does not provide tax, financial or legal advice and this information is not intended to be tax, financial or legal advice. Investors should consult a financial or tax advisors to determine the tax implications of any potential investment on NextSeed.