What is Form 1099-A?
IRS Form 1099-A is one part of a series of '1099' forms issued by the Internal Revenue Service (IRS) for reporting various types of non-wage payments and transactions. Form 1099-A itself is specifically used when property has been transferred due to foreclosure filed by a lender. When a property is sold or has been transferred, the IRS must be notified. In the case of a standard property transaction such as real estate, the seller will receive a Form 1099-S which is the result of the real estate transaction. But in the case of foreclosure of a property, the lender will get Form 1099-A.
You will get a Form 1099-A from your mortgage lender. If you have more than one mortgage, you may receive multiple 1099-A forms separately. Form 1099-A is used because canceled debts are considered income by the IRS. If you borrow money (in the form of a mortgage from a lender) to buy a house, then in a certain period, you stop making payments; then the amount you don't pay is considered income and will be taxed.
In general, Form 1099-A explains the sale, date of transfer, and fair market value (FMV) of a property that the issuer must include. This information is used to determine gains and losses on the sale of property including taxes that will be due. If you are required to complete Form 1099-A, you will likely submit this form several times for each property. To download the Form 1099-A template, you can go to the IRS website or PDF Reader Pro official website.
Who Might Need to Fill Form 1099-A?
Several parties need to fill out Form 1099-A. Multiple lenders who acquire or take possession of an interest in the property causing the cessation of sale must complete form 1099-A. In addition, this form also applies to multiple single loan owners. If the loan is made by multiple single lenders in the form of a fixed investment pool or trust, then Form 1099-A must be filed on behalf of all the owners. Government lenders secured by a foreclosed property are required to complete this form as well.
As mentioned above, Form 1099-A is used by lenders, or lending institutions such as banks and other financial institutions to notify the IRS when a property has been foreclosed on. The form must be submitted by the lender in the year following the calendar year in which someone has acquired an interest in that property. Forms may also be filed if the lender knows or believes the property has been abandoned.
How to Download Form 1099-A?
If you wish to acquire or take possession of a property, you will receive a form 1099-A. If you don't get the copy of the form, PDF Reader Pro provides the latest version of form 1099-A for you by clicking this link. You can fill out the form online on any device you have. Or you can directly download form 1099-A from the official IRS website here.
What Are the Components of Form 1099-A?
Form 1099-A is divided to the right side and the left side. The left side mostly displays details about the lender and borrower, including, name, address, tax identification number (TIN), and account number of the borrower. The right side of the form has 6 boxes which are:
Box 1: Filled with the date of acquisition of the lender or abandonment. This box shows the date the lender acquired the property or when the lender learned the property had been abandoned.
Box 2: Balance of principal understanding. This box shows the principal loan balance when the lender acquires the property or learns that the property has been abandoned.
Box 3: This box is usually left blank.
Box 4: Fair Market Value (FMV) of the property. This box shows the fair market value of the foreclosed property. If the amount in Box 4 is less than the amount in Box 2, the debt is canceled and a debt cancellation can occur. If so, the borrower must also receive Form 1099-C.
Box 5: Check if the borrower is personally liable for debt repayment. This box indicates whether the borrower was fully responsible for the debt at the time the debt was created or was amended based on the latest modification.
Box 6: Property description. This box shows information about the property like address, etc.
How to Fill Out Form 1099-A?
PDF Reader Pro allows you to get Form 1099-A copy and fill it out easily. Follow these simple instructions below to complete the form.
Download PDF Reader Pro and launch it;
Open Form 1099-A in PDF Reader Pro;
Click on any field and start typing your information;
Save the complete form on your device for future use;
Print out the form.
Or click here to fill out the form online.
PDF Reader Pro comes with a series of powerful features to make it easier for you to fill out forms. Form 1099-A is available online here or download and fill it out offline with PDF Reader Pro. By using this software, you can edit your forms offline when you need it. Once again, make sure you provide accurate information on your Form 1099-A and submit this form before the deadline. DOWNLOAD PDF Reader Pro now, enjoy its advanced features, and fill out your form in a blink! If you have any questions, feel free to reach us at [email protected].