Form 1099-A - Acquisition Or Abandonment Of Secured Property

Instructions for Borrower

ownership were transferred to the lender. This may be the date of a

Certain lenders who acquire an interest in property that was security for a

foreclosure or execution sale or the date your right of redemption or

loan or who have reason to know that such property has been abandoned

objection expired. For an abandonment, the date shown is the date on

must provide you with this statement. You may have reportable income or

which the lender first knew or had reason to know that the property was

loss because of such acquisition or abandonment. Gain or loss from an

abandoned or the date of a foreclosure, execution, or similar sale.

acquisition generally is measured by the difference between your adjusted

basis in the property and the amount of your debt canceled in exchange

Box 2. Shows the debt (principal only) owed to the lender on the loan

for the property, or, if greater, the sale proceeds. If you abandoned the

when the interest in the property was acquired by the lender or on the date

property, you may have income from the discharge of indebtedness in the

the lender first knew or had reason to know that the property was

amount of the unpaid balance of your canceled debt. The tax

abandoned.

consequences of abandoning property depend on whether or not you were

Box 4. Shows the fair market value of the property. If the amount in box 4

personally liable for the debt. Losses on acquisitions or abandonments of

is less than the amount in box 2, and your debt is canceled, you may have

property held for personal use are not deductible. See Pub. 4681 for

cancellation of debt income. If the property was your main home, see Pub.

information about your tax consequences.

523 to figure any taxable gain or ordinary income.

Property means any real property (such as a personal residence); any

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

intangible property; and tangible personal property that is held for

debt when the debt was created or, if modified, when it was last modified.

investment or used in a trade or business.

Box 6. Shows the description of the property acquired by the lender or

If you borrowed money on this property with someone else, each of you

abandoned by you. If “CCC” is shown, the form indicates the amount of

should receive this statement.

any Commodity Credit Corporation loan outstanding when you forfeited

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

your commodity.

lender assigned to distinguish your account.

Future developments. For the latest information about developments

Box 1. For a lender’s acquisition of property that was security for a loan,

related to Form 1099-A and its instructions, such as legislation enacted

the date shown is generally the earlier of the date title was transferred to

after they were published, go to

the lender or the date possession and the burdens and benefits of

Form 1099-A - Acquisition Or Abandonment Of Secured Property - 2013 Page 4

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