Form 1099-A, Acquisition or Abandonment of Secured Property, is sent by a lender when it takes back property that secured a loan, usually through foreclosure, or learns you've abandoned it. It shows the date, the loan principal still owed and the property's fair market value. It isn't a bill, but it can mean you have taxable gain, a loss, or income from cancelled debt, so the numbers need to go on your return in the right place.
Everything below comes from the IRS's Form 1099-A with its borrower instructions and the Instructions for Forms 1099-A and 1099-C (Rev. April 2025), as of October 2026.
Why you received one
A lender files Form 1099-A for each borrower when it lends in connection with its trade or business and, to settle all or part of the debt, acquires an interest in property that secured the loan, or has reason to know the property was abandoned. The lender doesn't have to be a bank. If you took out the loan with someone else, each of you should get a copy.
Property here means real property, such as your home, intangible property, and tangible personal property held for investment or used in a business.
The boxes, explained
| Box | What it shows |
|---|---|
| 1 | The date the lender acquired the property, generally the earlier of when title or possession passed to it, or for abandonment the date it knew or had reason to know |
| 2 | The loan principal still owed on that date, not interest or fees |
| 3 | Reserved for future use |
| 4 | The property's fair market value |
| 5 | Whether you were personally liable for repaying the debt |
| 6 | A description of the property |
Box 4 against box 2: the comparison that matters
Here's the point most people miss. The IRS's borrower instructions say that if box 4 is less than box 2, and your debt is cancelled, you may have cancellation of debt income. So a home worth less than the loan can leave you with two separate tax questions: a gain or loss on giving up the property, and income from the part of the debt that was written off.
Gain or loss on the acquisition is generally measured by the difference between your adjusted basis in the property and the debt cancelled in exchange for it, or the sale proceeds if those are higher. If the property was your main home, the IRS points to Pub. 523 to work out any taxable gain. Losses on property held for personal use aren't deductible.
Why box 5 changes the answer
The tax effect of abandoning property depends on whether you were personally liable for the debt, which is what box 5 shows. If you abandoned the property, you may have income from the discharge of debt equal to the unpaid balance cancelled. Pub. 4681 is the IRS guide the form names for working through these cases.
Form 1099-A and Form 1099-C together
If the lender also cancels $600 or more of the debt in the same calendar year, it doesn't have to send both forms. It can send only a Form 1099-C, covering the 1099-A details in boxes 4, 5 and 7. So depending on the lender, you might get one form or two for the same foreclosure.
| You receive | What it usually signals |
|---|---|
| Form 1099-A only | The lender took the property or knows it was abandoned; debt cancellation may come later or not at all |
| Form 1099-C only | Debt was cancelled in the same year, with the property details folded in |
| Both forms | The lender reported both events separately |
One date to watch
The instructions note that the exclusion from income for discharged mortgage debt on qualified principal residence indebtedness expired on December 31, 2025. If debt on your main home is cancelled after that, check the current rules before you treat any of it as tax-free. Exclusions for insolvency and similar cases are claimed on Form 982.
When the lender reports it
For an abandonment, the date in box 1 is generally when the lender first knew or had reason to know the property was abandoned, or the date of a foreclosure, execution or similar sale. That's why a 1099-A can arrive for a year after you moved out. If box 6 shows 'CCC', the form relates to a Commodity Credit Corporation loan outstanding when you forfeited the commodity.
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What to do when one arrives
- Check box 1, box 2 and box 4 against your own records and the foreclosure paperwork.
- Note whether box 5 says you were personally liable.
- Find your adjusted basis in the property, using Pub. 4681 if you're not sure how.
- Compare box 4 with box 2 to see whether cancellation of debt income could follow.
- Watch for a Form 1099-C for the same debt, and keep both together for your return.
For your protection, the form may show only the last four digits of your SSN or other TIN, but the lender reports your full number to the IRS.
The verdict
Form 1099-A doesn't mean you owe tax on its own, but it starts the clock on working out whether you do. Read box 4 against box 2 and check box 5 first, because those three boxes decide most of the outcome. If the property was your home and the debt was large, it's worth having help, since gain, loss and cancelled debt can all apply at once.
Frequently asked questions
Why did I get a Form 1099-A?
Your lender acquired an interest in property that secured your loan, for example through foreclosure, or had reason to know you abandoned it.
Is Form 1099-A income?
Not by itself. It reports the acquisition or abandonment, but you may have gain, loss or cancellation of debt income because of it.
What does box 2 on Form 1099-A show?
The debt owed to the lender, principal only, when it acquired the property or first knew or had reason to know it was abandoned.
What if box 4 is less than box 2?
If the fair market value in box 4 is less than the debt in box 2 and your debt is cancelled, you may have cancellation of debt income.
Can I get Form 1099-C instead of Form 1099-A?
Yes. If the lender cancels $600 or more of the debt in the same calendar year, it can file only Form 1099-C.
Can I deduct a loss shown by Form 1099-A?
Not on property held for personal use. Losses on acquisitions or abandonments of personal-use property aren't deductible.
