Instructions For Forms 1099-A And 1099-C - 2017
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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
not complete boxes 4, 5, and 7 on Form 1099-C. See the
unless otherwise noted.
instructions for Form 1099-C, later.
Future Developments
Property
For the latest information about developments related to
“Property” means any real property (such as a personal
Forms 1099-A and 1099-C and their instructions, such as
residence), any intangible property, and tangible personal
legislation enacted after they were published, go to
property except the following.
and
No reporting is required for tangible personal property
What’s New
(such as a car) held only for personal use. However, you
must file Form 1099-A if the property is totally or partly
T.D. 9793 removes the rule that a deemed discharge of
held for use in a trade or business or for investment.
indebtedness for which a Form 1099-C must be filed
No reporting is required if the property securing the loan
occurs at the expiration of a 36-month nonpayment testing
is located outside the United States and the borrower has
period.
furnished the lender a statement, under penalties of
Reminder
perjury, that the borrower is an exempt foreign person
(unless the lender knows that the statement is false).
In addition to these specific instructions, you should also
use the 2017 General Instructions for Certain Information
Who Must File
Returns. Those general instructions include information
In addition to the general rule specified above, the
about the following topics.
following rules apply.
Who must file (nominee/middleman).
When and where to file.
Multiple owners of a single loan. If there are multiple
Electronic reporting requirements.
owners of undivided interests in a single loan, such as in
Corrected and void returns.
pools, fixed investment trusts, or other similar
Statements to recipients.
arrangements, the trustee, record owner, or person acting
Taxpayer identification numbers.
in a similar capacity must file Form 1099-A on behalf of all
Backup withholding.
the owners of beneficial interests or participations. In this
Penalties.
case, only one form for each borrower must be filed on
Other general topics.
behalf of all owners with respect to the loan. Similarly, for
bond issues, only the trustee or similar person is required
You can get the general instructions at
General
to report.
Instructions for Certain Information
Returns,
form1099a
or
Governmental unit. A governmental unit, or any of its
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
secured property, it is not necessary to file both Form
holder must file Form 1099-A for the second trust even
1099-A and Form 1099-C, Cancellation of Debt, for the
though no part of the second trust was satisfied by the
same debtor. You may file Form 1099-C only. You will
proceeds of the foreclosure sale.
meet your Form 1099-A filing requirement for the debtor
by completing boxes 4, 5, and 7 on Form 1099-C.
However, if you file both Forms 1099-A and 1099-C, do
Nov 10, 2016
Cat. No. 27991U
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