Form 1099-C - Cancellation Of Debt - 2013 (Page 4 of 6) in pdf

Instructions for Debtor

Box 5. Shows whether you were personally liable for repayment of the debt

You received this form because a Federal Government agency or an applicable

financial entity (a lender) has discharged (canceled or forgiven) a debt you owed,

when the debt was created or, if modified, at the time of the last modification.

or because an identifiable event has occurred that either is or is deemed to be a

See Pub. 4681 for reporting instructions.

discharge of a debt of $600 or more. If a creditor has discharged a debt you

Box 6. May show the reason your creditor has filed this form. The codes in this

owed, you are required to include the discharged amount in your income, even if

box are described in more detail in Pub. 4681. A—Bankruptcy; B—Other

it is less than $600, on the "Other income" line of your Form 1040. However, you

judicial debt relief; C—Statute of limitations or expiration of deficiency period; D

may not have to include all of the canceled debt in your income. There are

—Foreclosure election; E—Debt relief from probate or similar proceeding; F—By

exceptions and exclusions, such as bankruptcy and insolvency. See Pub. 4681,

agreement; G—Decision or policy to discontinue collection; H—Expiration of

available at IRS.gov, for more details. If an identifiable event has occurred but

nonpayment testing period; or I—Other actual discharge before identifiable

the debt has not actually been discharged, then include any discharged debt in

event.

your income in the year that it is actually discharged, unless an exception or

Box 7. If, in the same calendar year, a foreclosure or abandonment of property

exclusion applies to you in that year.

occurred in connection with the cancellation of the debt, the fair market value

Account number. May show an account or other unique number the creditor

(FMV) of the property will be shown, or you will receive a separate Form 1099-A.

assigned to distinguish your account.

Generally, the gross foreclosure bid price is considered to be the FMV. For an

Box 1. Shows the date the earliest identifiable event occurred or, at the

abandonment or voluntary conveyance in lieu of foreclosure, the FMV is

creditor's discretion, the date of an actual discharge that occurred before an

generally the appraised value of the property. You may have income or loss

identifiable event. See the code in box 6.

because of the acquisition or abandonment. See Pub. 4681 for information

about foreclosures and abandonments. If the property was your main home, see

Box 2. Shows the amount of debt either actually or deemed discharged. Note. If

Pub. 523 to figure any taxable gain or ordinary income.

you do not agree with the amount, contact your creditor.

Future developments. For the latest information about developments related to

Box 3. Shows interest if included in the debt reported in box 2. See Pub. 4681

Form 1099-C and its instructions, such as legislation enacted after they were

to see if you must include the interest in gross income.

published, go to

Box 4. Shows a description of the debt. If box 7 is completed, box 4 also shows

a description of the property.

Form 1099-C - Cancellation Of Debt - 2013 Page 4

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