What is IRS Form 1099-A?

IRS Form 1099-A is issued by a lender when your secured property, such as a home, land, or business property, is foreclosed, repossessed, or abandoned. The form reports main details like acquisition date, loan balance, property's fair market value, and the borrower's liability. It helps calculate gain/loss and any possible taxable canceled debt.

No, you don't need to file Form 1099-A on your own. The lender or financial institution will file it with the IRS and provide you with a copy of it. You only need to use the information from the form while preparing your tax return.

Yes, canceled debt may be taxed as ordinary income, provided if you were personally liable for repayment (Box 5 checked). If not personally liable, you typically don't need to report canceled debt. However, there are some exceptions, like exclusion for qualified principal residence indebtedness.

You must receive Form 1099-A from your lender by the 31st of January of the relevant year after your property was foreclosed, repossessed, or abandoned.

If you think that you should have received Form 1099-A but you haven't, then contact your lender right away to request a copy. You will need this form to calculate gains, losses, or taxable income from the transaction accurately.