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How to Complete Form 1099-A, Acquisition or Abandonment of ...
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How to Complete Form 1099-A, Acquisition or Abandonment of Secured Property Wed, Apr 24, 2019 Tax Forms Completing Form 1099-A Where the sale is reported on the tax return depends upon the nature of the property acquired by the lender. a. If the property was a primary home, the sale is reported by completing the home sale worksheet. b. If the property is rental or business property, the sale is reported through the asset manager. c. If the property is anything else, the sale is reported on Schedule D (entered on Form 8949 ). Form 1099-A provides the date to use for date sold and balance of principal outstanding. The preparer will need to obtain the date acquired as well as purchase price from the taxpayer since Form 1099-A does not contain that information. The date sold should be the date from Box 1, “Date of lender’s acquisition or knowledge of abandonment.” If the taxpayer is personally liable for the loan (indicated in Box 5): The sales price is the smaller of the amount of outstanding debt immediately before the transfer of property or “Fair market value of property”(value in Box 4). If the taxpayer is not personally liable for the loan (indicated in Box 5): The sales price is the amount of outstanding debt immediately before the transfer of property. In rare occasions, the sales price may be increased by any proceeds from the foreclosure sale the taxpayer receives.
Transcript of How to Complete Form 1099-A, Acquisition or Abandonment of ...
How to Complete Form 1099-A, Acquisition or Abandonment ofSecured PropertyWed, Apr 24, 2019 Tax Forms Completing Form 1099-A
Where the sale is reported on the tax return depends upon the nature of the property acquired by the lender.
a. If the property was a primary home, the sale is reported by completing the home sale worksheet.
b. If the property is rental or business property, the sale is reported through the asset manager.
c. If the property is anything else, the sale is reported on Schedule D (entered on Form 8949 ).
Form 1099-A provides the date to use for date sold and balance of principal outstanding. The preparer will need to obtain thedate acquired as well as purchase price from the taxpayer since Form 1099-A does not contain that information. The date soldshould be the date from Box 1, “Date of lender’s acquisition or knowledge of abandonment.”
If the taxpayer is personally liable for the loan (indicated in Box 5):
The sales price is the smaller of the amount of outstanding debt immediately before the transfer of property or “Fairmarket value of property”(value in Box 4).
If the taxpayer is not personally liable for the loan (indicated in Box 5):
The sales price is the amount of outstanding debt immediately before the transfer of property.
In rare occasions, the sales price may be increased by any proceeds from the foreclosure sale the taxpayer receives.
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