Updated November 7, 2026. Quick answer: Box 1 of Form 1099-A is the date the lender acquired the secured property, or the date it knew or had reason to know you abandoned it. Box 2 is the balance of principal outstanding on that date: unpaid principal only, with no accrued interest and no foreclosure costs. Box 2 is therefore often lower than the number a lender would quote as a payoff.
What the borrower’s copy says
“Box 1. For a lender’s acquisition of property that was security for a loan, the date shown is generally the earlier of the date title was transferred to the lender or the date possession and the burdens and benefits of ownership were transferred to the lender.” “This may be the date of a foreclosure or execution sale or the date your right of redemption or objection expired.” “For an abandonment, the date shown is the date on which the lender first knew or had reason to know that the property was abandoned or the date of a foreclosure, execution, or similar sale.”
How the lender is told to fill in box 1
“For an acquisition, enter the date you acquired the secured property.” If the lender bought the property at its own sale, the rule is “If you purchase the property at a sale held to satisfy the debt, such as at a foreclosure or execution sale, use the later of the date of sale or the date the borrower’s right of redemption, if any, expires.” For an abandonment the lender uses the date it knew or had reason to know, unless it expects to start a foreclosure or similar action within 3 months, and “If a third party purchases the property at a foreclosure, execution, or similar sale, the property is treated as abandoned, and you have reason to know of its abandonment on the date of sale.”
What box 2 holds, and what it leaves out
The borrower’s copy says “Box 2. Shows the debt (principal only) owed to the lender on the loan when the interest in the property was acquired by the lender or on the date the lender first knew or had reason to know that the property was abandoned.” The lender instructions are direct about the exclusions: “Include only unpaid principal on the original debt. Do not include accrued interest or foreclosure costs.”
Illustration with invented numbers
Illustration, not an IRS example, computed from invented inputs: a borrower’s unpaid principal is $180,000, with $6,000 of accrued interest and $4,000 of foreclosure costs. A lender quoting everything owed would say $190,000 (computed, $180,000 plus $6,000 plus $4,000). Box 2 shows $180,000 (computed from the principal alone), because the instructions tell the lender to leave out interest and costs. Compare box 2 with box 4 on the next page to see whether any debt was left over.
| Item | Invented amount |
|---|---|
| Unpaid principal | $180,000 |
| Accrued interest (not in box 2) | $6,000 |
| Foreclosure costs (not in box 2) | $4,000 |
| Everything owed (computed) | $190,000 |
| Box 2 entry (computed) | $180,000 |
Why the date matters to you
The date is when the sale-like event happened, and the filer reports it in the year after: “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.” If the date or the balance does not match your own records, the lender that issued the form is the one to ask. See the overview of all six boxes for the rest of the form.
Edition
This page reads Form 1099-C and Form 1099-A (both Rev. April 2025), the Instructions for Forms 1099-A and 1099-C (Rev. April 2025) and Publication 4681 for 2025 returns, all files irs.gov served on November 7, 2026 (sha256 in the kit data). Check the revision printed on your own form before you follow a box reference, and the IRS page for the form for anything enacted after these files were published.
Common mistakes
- Expecting box 2 to match the payoff letter. Interest and foreclosure costs are left out by instruction.
- Reading box 1 as the date you moved out. For a foreclosure it follows title, possession, or the end of a redemption or objection period.
- Using box 2 as the amount of canceled debt. Canceled debt is in box 2 of a Form 1099-C, a different form.
Related: Form 1099-A boxes explained, and Form 1098 box 2.
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Answer againSources
- Form 1099-A, Acquisition or Abandonment of Secured Property (Rev. April 2025): https://www.irs.gov/pub/irs-pdf/f1099a.pdf
- Instructions for Forms 1099-A and 1099-C (Rev. April 2025): https://www.irs.gov/pub/irs-pdf/i1099ac.pdf
Read from the IRS documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.