Form 1099-C - Cancellation Of Debt - 2012 (Page 4 of 6) in pdf

Instructions for Debtor

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

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,

a description of the property.

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

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

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

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

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

See Pub. 4681 for reporting instructions.

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

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

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

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

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

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

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

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

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

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

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

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

exclusion applies to you in that year.

event.

Debtor's identification number. For your protection, this form may show only

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

the last four digits of your SSN, ITIN, or ATIN. However, the issuer has reported

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

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

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

and/or local governments.

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

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

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

assigned to distinguish your account.

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

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

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

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

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

identifiable event. See the code in box 6.

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

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

Future developments. The IRS has created a page on IRS.gov for information

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

about Form 1099-C and its instructions, at Information

about any future developments affecting Form 1099-C (such as legislation

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

enacted after we release it) will be posted on that page.

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

Form 1099-C - Cancellation Of Debt - 2012 Page 4

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