I have read many articles about people unhappy with the tax treatment of lending club.. I am confused. So if you put your money at Marcus you get 2.25 % and you receive a 1099-int and it is taxed as ordinary income. Lending club seems exactly the same except you get a return of roughly double plus you get capital losses. These losses can be used to offset capital gains in stocks. Capital losses above $3,000 have value since they can be written off against stocks. So my take is the tax treatment is the same as a savings account or CD, but the capital losses are a bonus and improves taxes through the 3k deduction and offset against stock capital gains. Am I not looking at this the right way? What am I missing? I have not used LC platform yet but was considering doing so.