Form 1099-C - Cancellation Of Debt - 2016 (Page 4 of 6) in pdf

Instructions for Debtor

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

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

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

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

financial entity (a creditor) has discharged (canceled or forgiven) a debt you

a description of the property.

owed, or because an identifiable event has occurred that either is or is deemed

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

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

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

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

See Pub. 4681 for reporting instructions.

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

Box 6. Shows the reason your creditor has filed this form. The codes in this box

However, you may not have to include all of the canceled debt in your income.

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

There are exceptions and exclusions, such as bankruptcy and insolvency. See

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

Pub. 4681, available at IRS.gov, for more details. If an identifiable event has

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

occurred but the debt has not actually been discharged, then include any

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

discharged debt in your income in the year that it is actually discharged, unless

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

an exception or 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 social security number (SSN), individual taxpayer

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

identification number (ITIN), adoption taxpayer identification number (ATIN), or

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

employer identification number (EIN). However, the creditor has reported your

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

complete identification number to the IRS.

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

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

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

assigned to distinguish your account.

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

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

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

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

identifiable event. See the code in box 6.

Future developments. For the latest information about developments related to

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

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

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

published, go to

Form 1099-C - Cancellation Of Debt - 2016 Page 4

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