, Answering FAQ'sTurboTax Employee
If you do not make payments due on a loan secured by property, your lender may foreclose on your mortgage or repossess the property. Lenders could send a Form 1099-A, Acquisition or Abandonment of Secured Property, or Form 1099-C, Cancellation of Debt, or both. If you received a 1099-A because you have abandoned personal property, such as a car, you don't need to report it in your return.
Keep this form for your records in case you get a 1099-C that indicates the debt has actually been forgiven.
IMPORTANT: If you received a 1099-A for a business- or investment-related property, such as a rental property or company car, see IRS Publication 544 Sales and Other Disposition of Assets and IRS Publication 4681 Canceled Debts, Foreclosures, Repossessions and Abandonments before continuing.
We also recommend you check with a professional, such as an experienced EA or CPA at TurboTax CPA Select.
- Canceled Debt, Is It Taxable or Not?
- Form 1099-C, Cancellation of Debt
- Form 982, Reduction of Tax Attributes
- How does bankruptcy effect my taxes?