Investors & landlords

Some follow-up comments:

• You should receive a 1099-C as well, so I would hold off or make an inquiry
• The 1099-A and 1099-C really relate to two separate components of the transaction
• The 1099-A is related to the sale (abandonment) of your property (timeshare)
• The 1099-C is related to the cancellation of debt
• It is possible to only receive one form, but if that is the case, it should be a 1099-C
• You do, however, possibly have sufficient information if you don't receive a 1099-C.  However, it would be best to inquire about this to make sure what you will report is the same figure.
• Your 1099-A reports the principal outstanding at the date of the abandonment.  This may or may not be the same as what will be reported on the 1099-C.  The amount on the 1099-C may include some unpaid interest; which means it may not agree to the 1099-A amount.
• Using the 1099-A determines whether you have a gain or loss on the "sale" (abandonment).  Your selling price is the lower of box 2 or 4.  This is because you had a recourse loan.
• Now you need to figure out your purchase price for the timeshare.  This is your cost.
• These two amounts will then be reported on form 8949 and Schedule D, along with the appropriate dates.
• The cancellation of debt, will just be reported as other income; whatever that amount ends up being.
• If you don't receive a 1099-C or you are told you won't receive one, then I recommend you use box 2 as the cancellation of debt amount to report as ordinary income.
• So in summary, you have two transactions; one being the "sale" of the property (timeshare), the second being the cancellation of debt.