What Is Form 1099-A?
Form 1099-A, also known as Acquisition or Abandonment of Secured Property, is one of a series of “1099” forms used by the Internal Revenue Service (IRS) to report various nonwage payments and transactions. Form 1099-A is typically used when property has been transferred due to foreclosure. Whenever a property is sold or transferred, the IRS must be informed. In a standard real estate sale, the seller receives Form 1099-S (Proceeds from Real Estate Transactions) to report the sale to the IRS. In the case of a foreclosure, the seller gets Form 1099-A. Form 1099-A reports details about the sale, including the date of the transfer, the fair market value (FMV) of the property at the time of the transfer, and the loan balance on the date of the transfer. This information helps the seller determine if there is a gain or loss on the sale of the property—and if any capital gains taxes are due.
Who Needs Form 1099-A?
If you have lost a home or other real property to foreclosure, you will receive a copy of Form 1099-A for your records and to help you determine if there is a gain or loss on the sale of the property. If you had more than one mortgage or loan for a single property, you may receive multiple 1099-A forms. To calculate the gain or loss, subtract the tax basis in the home (the purchase price less any improvements you made) from its fair market value. If you’re not liable for any debt that remains on your loan, you won’t use the fair market value; instead, you’ll use the outstanding mortgage balance at the time of foreclosure.
What Is Form 1099-A Used For?
IRS Form 1099-A is used to notify the IRS that a property has been sold or transferred as a result of a foreclosure. The IRA advises lenders to “file Form 1099-A in the year following the calendar year in which you acquire an interest in the property or first know or have reason to know that it has been abandoned.” After downloading the free Form 1099-A template, if you need to fill in it or modify the content on your Mac, you may need a powerful PDF editor for Mac. Using PDF Reader Pro, you can add your own details and use this template design for your own needs, edit the PDF more conveniently. Download the form and fill it out using PDF Reader Pro. Click the button "Free Download" to download the app.