Instructions For Forms 1099-A And 1099-C - Acquisition Or Abandonment Of Secured Property And Cancellation Of Debt - 2018
ADVERTISEMENT
1
2
3
4
5
62018
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1099-A and 1099-C
Acquisition or Abandonment of Secured Property and Cancellation of Debt
Section references are to the Internal Revenue Code
secured property, it is not necessary to file both Form
unless otherwise noted.
1099-A and Form 1099-C, Cancellation of Debt, for the
same debtor. You may file Form 1099-C only. You will
Future Developments
meet your Form 1099-A filing requirement for the debtor
by completing boxes 4, 5, and 7 on Form 1099-C.
For the latest information about developments related to
However, if you file both Forms 1099-A and 1099-C, do
Forms 1099-A and 1099-C and their instructions, such as
not complete boxes 4, 5, and 7 on Form 1099-C. See the
legislation enacted after they were published, go to
instructions for Form 1099-C, later.
IRS.gov/Form1099A
and IRS.gov/Form1099C.
What’s New
Property
“Property” means any real property (such as a personal
On-line pdf fillable Copies B and C. To ease statement
residence), any intangible property, and tangible personal
furnishing requirements, Copies B and C have been made
property except the following.
fillable on-line in a pdf format available at
IRS.gov/
Form1099A
and IRS.gov/Form1099C. You can complete
No reporting is required for tangible personal property
these copies on-line for furnishing statements to
(such as a car) held only for personal use. However, you
recipients and for retaining in your own files.
must file Form 1099-A if the property is totally or partly
held for use in a trade or business or for investment.
Student loans discharged on account of death or dis-
No reporting is required if the property securing the loan
ability. Do not report these discharges on Form 1099-C.
is located outside the United States and the borrower has
Reminder
furnished the lender a statement, under penalties of
perjury, that the borrower is an exempt foreign person
In addition to these specific instructions, you should also
(unless the lender knows that the statement is false).
use the 2018 General Instructions for Certain Information
Returns. Those general instructions include information
Who Must File
about the following topics.
In addition to the general rule specified above, the
Who must file (nominee/middleman).
following rules apply.
When and where to file.
Electronic reporting requirements.
Multiple owners of a single loan. If there are multiple
Corrected and void returns.
owners of undivided interests in a single loan, such as in
Statements to recipients.
pools, fixed investment trusts, or other similar
Taxpayer identification numbers (TINs).
arrangements, the trustee, record owner, or person acting
Backup withholding.
in a similar capacity must file Form 1099-A on behalf of all
Penalties.
the owners of beneficial interests or participations. In this
Other general topics.
case, only one form for each borrower must be filed on
behalf of all owners with respect to the loan. Similarly, for
You can get the general instructions from General
bond issues, only the trustee or similar person is required
Instructions for Certain Information Returns at
IRS.gov/
to report.
Form1099
or go to
IRS.gov/Form1099A
or
IRS.gov/
Governmental unit. A governmental unit, or any of its
Form1099C.
subsidiary agencies, that lends money secured by
Specific Instructions for Form 1099-A
property must file Form 1099-A.
Subsequent holder. A subsequent holder of a loan is
File Form 1099-A, Acquisition or Abandonment of
treated as a lender and is required to report events
Secured Property, for each borrower if you lend money in
occurring after the loan is transferred to the new holder.
connection with your trade or business and, in full or
partial satisfaction of the debt, you acquire an interest in
Multiple lenders. If more than one person lends money
property that is security for the debt, or you have reason to
secured by property and one lender forecloses or
know that the property has been abandoned. You need
otherwise acquires an interest in the property and the sale
not be in the business of lending money to be subject to
or other acquisition terminates, reduces, or otherwise
this reporting requirement.
impairs the other lenders' security interests in the
property, the other lenders must file Form 1099-A for each
Coordination With Form 1099-C
of their loans. For example, if a first trust holder forecloses
If, in the same calendar year, you cancel a debt of $600 or
on a building, and the second trust holder knows or has
more in connection with a foreclosure or abandonment of
reason to know of such foreclosure, the second trust
Jan 22, 2018
Cat. No. 27991U
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial