Form 1099-A - Acquisition Or Abandonment Of Secured Property

Instructions for Borrower

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

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

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

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

or the date possession and the burdens and benefits of ownership were

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

transferred to the lender. This may be the date of a foreclosure or execution sale

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

or the date your right of redemption or objection expired. For an abandonment,

generally is measured by the difference between your adjusted basis in the

the date shown is the date on which the lender first knew or had reason to know

property and the amount of your debt canceled in exchange for the property, or,

that the property was abandoned or the date of a foreclosure, execution, or

if greater, the sale proceeds. If you abandoned the property, you may have

similar sale.

income from the discharge of indebtedness in the amount of the unpaid balance

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

of your canceled debt. The tax consequences of abandoning property depend

on whether or not you were personally liable for the debt. Losses on acquisitions

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

or abandonments of property held for personal use are not deductible. See Pub.

knew or had reason to know that the property was abandoned.

4681 for information about your tax consequences.

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

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

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. 523 to figure any

intangible property; and tangible personal property that is held for investment or

taxable gain or ordinary income.

used in a trade or business.

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

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

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

should receive this statement.

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

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

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

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

Commodity Credit Corporation loan outstanding when you forfeited your

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

commodity.

However, the issuer has reported your complete identification number to the IRS

and, where applicable, to state and/or local governments.

Future developments. For the latest information about developments related to

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

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

published, go to

assigned to distinguish your account.

Form 1099-A - Acquisition Or Abandonment Of Secured Property - 2014 Page 4

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