Form 1099-A - Acquisition Or Abandonment Of Secured Property

Instructions for Borrower

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

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

lender assigned to distinguish your account.

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

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

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

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

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

acquisition generally is measured by the difference between your adjusted

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

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

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

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

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

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

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

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

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

consequences of abandoning property depend on whether or not you were

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

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

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

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

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

information about your tax consequences.

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

abandoned.

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

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

intangible property; and tangible personal property that is held for

investment or used in a trade or business.

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

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

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

523 to figure any taxable gain or ordinary income.

should receive this statement.

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

Borrower’s identification number. For your protection, this form may

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

show only the last four digits of your social security number (SSN),

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

individual taxpayer identification number (ITIN), or adoption taxpayer

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

identification number (ATIN). However, the issuer has reported your

any Commodity Credit Corporation loan outstanding when you forfeited

complete identification number to the IRS and, where applicable, to state

your commodity.

and/or local governments.

Form 1099-A - Acquisition Or Abandonment Of Secured Property - 2012 Page 4

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