Form 1099-A, Acquisition or Abandonment of Secured Property

What is 1099-A?

Form 1099-A, Acquisition or Abandonment of Secured Property, is an information return filed by a lender that, in connection with a loan made in its trade or business, acquires an interest in property that secured the debt, typically through foreclosure or repossession, or has reason to know the property was abandoned. The filer does not need to be in the business of lending money.

For the borrower, the event is treated like a sale of the property, so the form’s balance of principal outstanding and fair market value figures matter when reporting gain or loss. If the lender also cancels the debt in the same year, it may file Form 1099-C alone instead of both forms.

Who files 1099-A?

• Banks and other lenders that foreclose on or repossess property securing a loan
• Anyone who lends money in connection with a trade or business and acquires the secured property
• Lenders with reason to know that property securing their loan has been abandoned
• Borrowers receive Copy B and use it when reporting the foreclosure on their return

How to fill out 1099-A

1. Enter the lender’s name, address, and TIN, then the borrower’s name, address, and TIN.
2. Fill in box 1 with the date the lender acquired the property or first knew it was abandoned.
3. Report the balance of principal outstanding in box 2 and the property’s fair market value in box 4.
4. Check box 5 if the borrower was personally liable for the debt, and describe the property in box 6.
5. Download the finished PDF, furnish Copy B to the borrower, and file Copy A with the IRS by the deadline in the current instructions.