We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a 1099-A Form?

Marjorie McAtee
By Marjorie McAtee
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The 1099-A form is one of the forms used to report income to the United States Internal Revenue Service (IRS). The 1099-A form is usually used to help taxpayers accurately report a home foreclosure on that year's federal income tax return. This form is normally issued when a homeowner fails to make timely payments on a home loan, and the lender repossesses the house. For tax purposes, the IRS considers the loss of a home to foreclosure to be equivalent to the sale of the same home. The 1099-A form generally helps establish a fair market value, sale price, and date of sale for the home, so that the taxpayer can declare a gain or a loss when reporting the home foreclosure to the IRS.

The United States IRS 1099-A form is just one of the several 1099 forms used to help report non-employee forms of income to the Internal Revenue Service. Taxpayers are generally expected to include copies of any 1099 forms when filing that year's federal income tax return. The 1099-A form is generally filed when secured property, or property that has been offered as collateral for a loan, is repossessed by a lender. This form isn't always filed when secured property is abandoned, but is usually reserved for the repossession of real estate property. Failure to pay personal property loans, such as automobile loans, often doesn't result in the issuance of a 1099-A.

The typical 1099-A form contains several important items of information. The lender's contact information is usually listed, as is the borrower's. Taxpayer identification numbers and any relevant account numbers are also normally listed on the form.

Additional information that generally appears on the 1099-A form includes the date upon which the lender repossessed the property, and the amount of money still owed on the property at the time of repossession. The property's fair market value is generally included. A brief description of the property might be included, and the lender will usually indicate whether the listed borrower was personally responsible for repayment of the secured loan.

Taxpayers may typically use the difference between the reported fair market value of the foreclosed property and the remaining balance on the loan to report a gain or loss on that year's federal income tax return. Home foreclosures are normally reported as sales of property, with the foreclosure date standing in as the sale date, and the remaining loan balance standing in as the sale price. Copies of the form are normally issued to both the taxpayer and to the IRS.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources

Discussion Comments

By anon325005 — On Mar 13, 2013

Does this mean that the IRS will tax me as if this is income? And what if the fair market value is less then the amount owed?

By anon156874 — On Feb 28, 2011

Does this mean that the debt is forgiven by the lender when they issue a 1099a?

By anon150918 — On Feb 09, 2011

Does that mean that if the Fair Market Value is higher than the amount owed, that the difference would be reported as a loss?

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.