1099 Forms › What is Form 1099-A? Acquisition or Abandonment of Secured Property
At a Glance
Understanding IRS Form 1099-A
Form 1099-A (Acquisition or Abandonment of Secured Property) is used by lenders to report when they acquire an interest in property that was security for a debt, or when they have reason to know that the property has been abandoned.
This form is commonly issued during foreclosures, repossessions, and situations where borrowers abandon property securing a loan.
Who Must File Form 1099-A?
Form 1099-A must be filed by:
- Lenders who acquire property through foreclosure or similar proceedings
- Creditors who repossess property
- Financial institutions when borrowers abandon secured property
Form 1099-A Box Breakdown
| Box | Description |
|---|---|
| 1 | Date of lender's acquisition or knowledge of abandonment |
| 2 | Balance of principal outstanding |
| 4 | Fair market value of property |
| 5 | Checkbox if borrower was personally liable for repayment |
| 6 | Description of property |
Tax Implications for Borrowers
Receiving Form 1099-A can have significant tax consequences:
- Gain or loss: The borrower may recognize gain or loss based on the difference between the property's FMV and their adjusted basis
- Canceled debt: If the outstanding debt exceeds the FMV and is forgiven, the borrower may also receive Form 1099-C for cancellation of debt income
- Recourse vs. non-recourse: Tax treatment differs based on whether the borrower was personally liable
Related Forms
- Form 1099-C: Often issued alongside 1099-A when debt is canceled
E-File Form 1099-A with BoomTax
E-file your Form 1099-A with the IRS using BoomTax. Our platform handles bulk filing for lenders and financial institutions.
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You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
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Filing Deadlines
- Recipient copy: January 31
- IRS filing (paper): February 28
- IRS filing (electronic): March 31
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.