Affectively, id a loan to an entity for $15,000 back in 2012, which paid interest of 10% a year (reported on 1099-MISC forms). Long story short, in 2017, got a settlement statement back
of $10000. So from one perspective, that is a $5000 loss, correct?
Do we have to account for the Interest? Lets say, we got back 4 * 1500 = $6000
in interests over the life of the investment. Would that be a $1000 capital gain, or is interest, not taken into account, with respect to principal of the loan/investment.