Does anyone know of any tax programs that can handle a form 1099-a?
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Does anyone know of any tax programs that can handle a form 1099-a?
You will report the sale of the property on schedule D. You will get some information from 1099-A. The debt cancellation is your income if you were personally liable for repayment of the debt. This will reduce your cost basis.
About 1099-A: Generally, you receive Form 1099-A, Acquisition or Abandonment of Secured Property, from your lender. This form will have the information you need to determine the amount of your gain or loss and any ordinary income from cancellation of debt. You report profit and loss from the sale.
Box 1. For an acquisition, enter the date you acquired the secured property.
Box 2. Enter the balance of the debt outstanding at the time the interest in the property was acquired or on the date you first knew or had reason to know that the property was abandoned. Include only unpaid principal on the original debt. Do not include accrued interest or foreclosure costs.
Box 4. For a foreclosure, execution, or similar sale, enter the FMV of the property. Generally, the gross foreclosure bid price is considered to be the FMV.
Box 5: Was the borrower personally liable for repayment of the debt?
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