Category: What do I do with this form I received?
Form 1099-A : Acquisition or Abandonment of Property
If you have received a 1099-A, you must firstcall the IRS at 800-829-1040 to determine if the income reported is taxable on your return. If it is taxable, you will report the income in TaxSlayer under our 1099-C entry page. From the Federal section select Income >> Enter Myself >> Other Income >> Cancellation of Debt (1099-C).
Certain lenders who acquire an interest in property that was security for a loan or who have reason to know that such property has been abandoned are required to provide you with Form 1099-A. You could have reportable income or loss because of this acquisition or abandonment. Gain or loss from this is generally measured by the difference between your adjusted basis in the property and the amount of your debt canceled in exchange for the property, or, if greater, the sale proceeds.
If you abandoned the property, you may have income from the discharge of indebtedness in the amount of the unpaid balance of your canceled debt. The tax consequences of abandoning property depend on whether or not your were personally liable for the debt. Losses on acquisitions or abandonments of property held for personal use are not deductible.
For More Information on 1099-C please see: