Instructions For Forms 1099-A And 1099-C - 2006
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27Instructions for Borrower
Box 1. For a lender’s acquisition of property that was security for a
Certain lenders who acquire an interest in property that was security
loan, the date shown is generally the earlier of the date title was
for a loan or who have reason to know that such property has been
transferred to the lender or the date possession and the burdens and
abandoned must provide you with this statement. You may have
benefits of ownership were transferred to the lender. This may be the
reportable income or loss because of such acquisition or
date of a foreclosure or execution sale or the date your right of
abandonment. Gain or loss from an acquisition generally is measured
redemption or objection expired. For an abandonment, the date
by the difference between your adjusted basis in the property and
shown is the date on which the lender first knew or had reason to
the amount of your debt canceled in exchange for the property, or, if
know that the property was abandoned or the date of a foreclosure,
greater, the sale proceeds. If you abandoned the property, you may
execution, or similar sale.
have income from the discharge of indebtedness in the amount of
the unpaid balance of your canceled debt. You also may have a loss
Box 2. Shows the debt (principal only) owed to the lender on the
from abandonment up to the adjusted basis of the property at the
loan when the interest in the property was acquired by the lender or
time of abandonment. Losses on acquisitions or abandonments of
on the date the lender first knew or had reason to know that the
property held for personal use are not deductible. See Pub. 544,
property was abandoned.
Sales and Other Dispositions of Assets, for information about
Box 4. Shows the fair market value of the property. If the amount in
foreclosures and abandonments.
box 4 is less than the amount in box 2, and your debt is canceled,
Property means any real property (such as a personal residence);
you may have cancellation of debt income.
any intangible property; and tangible personal property that is held
Box 5. Shows whether you were personally liable for repayment of
for investment or used in a trade or business.
the loan when the debt was created or, if modified, when it was last
If you borrowed money on this property with someone else, each
modified.
of you should receive this statement.
Box 6. Shows the description of the property acquired by the lender
Account number. May show an account or other unique number
or abandoned by you. If “CCC” is shown, the form indicates the
the lender assigned to distinguish your account.
amount of any Commodity Credit Corporation loan outstanding when
you forfeited your commodity.
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