Updated November 7, 2026. Quick answer: Form 1099-A comes from a lender that acquired an interest in property securing your loan, or knew or had reason to know you abandoned it. Box 1 is the date, box 2 the unpaid principal, box 3 is reserved, box 4 the fair market value, box 5 whether you were personally liable and box 6 a description of the property. If the lender also canceled $600 or more in the same year, it may send only a Form 1099-C with its boxes 4, 5 and 7 filled in instead.
What the borrower’s copy says
The borrower’s instructions start with who sends the form: “Certain lenders who acquire an interest in property that was security for a loan or who have reason to know that such property has been abandoned must provide you with this statement.” They then say what it may mean for your return: “You may have reportable income or loss because of such acquisition or abandonment.” A co-borrower gets a copy too: “If you borrowed money on this property with someone else, each of you should receive this statement.”
The six boxes, in the IRS’s words
Each box has its own page here: boxes 1 and 2, boxes 4 and 5 and box 6.
| Box | What the borrower’s copy says |
|---|---|
| 1 | “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.” |
| 2 | “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.” |
| 3 | “Box 3. Reserved for future use.” |
| 4 | “Box 4. Shows the fair market value of the property.” |
| 5 | “Box 5. Shows whether you were personally liable for repayment of the debt when the debt was created or, if modified, when it was last modified.” |
| 6 | “Box 6. Shows the description of the property acquired by the lender or abandoned by you.” |
When you get a 1099-C instead
A lender that both took the property and canceled debt does not have to send two forms. The filer instructions say “You may file Form 1099-C only. You will meet your Form 1099-A filing requirement for the debtor by completing boxes 4, 5, and 7 on Form 1099-C.” That is why box 7 of the Form 1099-C shows a property value. A lender can still send both, and then the instructions tell it not to fill in those three boxes on the 1099-C.
What the form is for on your return
The form gives you the numbers for the sale-like event. The borrower’s instructions say “Gain or loss from an acquisition is generally measured by the difference between your adjusted basis in the property and the amount of your debt canceled in exchange for the property or, if greater, the sale proceeds.” Two limits are worth knowing: “Losses on acquisitions or abandonments of property held for personal use are not deductible.” The worksheet that walks the gain or loss and any canceled-debt income is on the foreclosure and repossession worksheet page.
When the form arrives, and when no form is required
For the lender, “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.” A lender need not file for every kind of property: “No reporting is required for tangible personal property (such as a car) securing a loan to an individual and held for personal use.” A foreclosure or repossession of such property can still have tax consequences even when no form arrives.
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
- Treating box 2 as the full payoff. The lender instructions limit it to unpaid principal, with no accrued interest or foreclosure costs.
- Expecting a Form 1099-A for a repossessed personal car. The instructions exempt that case, though the tax result still has to be worked out.
- Looking for both forms. When the lender also canceled debt it may have put the property data on the Form 1099-C instead.
- Deducting a loss on a personal-use home or vehicle. The borrower’s instructions say that loss is not deductible.
Related: Publication 544, and Form 1099-C boxes explained.
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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
- Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (2025 returns): https://www.irs.gov/pub/irs-pdf/p4681.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.