What is Form 1099-A used for?

Form 1099-A tells the IRS — and you — that a lender acquired secured property through foreclosure or learned it was abandoned. Because the IRS treats this as a sale, the form supplies the figures you need to calculate a gain or loss: the outstanding loan balance in Box 2 and the property's fair market value in Box 4. You typically report the result on Form 8949 and Schedule D.

What is the difference between a 1099-A and a 1099-C?

A 1099-A reports the acquisition or abandonment of secured property — the lender took back the collateral. A 1099-C reports actual cancellation of debt, where the lender forgives what you still owe. A single foreclosure can generate both forms, sometimes combined onto one document; the 1099-A covers the property transfer, the 1099-C the forgiven balance.

Do you have to pay taxes on a 1099-A?

Not automatically. Receiving a 1099-A doesn't by itself mean you owe tax, but the foreclosure is treated as a sale, so you may have a reportable gain, loss, or canceled-debt income. Box 5 — whether you were personally liable — determines whether you use Box 2 or Box 4 as the sales price. Consult a tax professional for your specific situation.

How long should I keep a 1099-A?

Keep a 1099-A at least 7 years, since the foreclosure can produce reported gain or canceled-debt income that the IRS may review. If the property was your primary home, retain it permanently with your closing statement and mortgage records — you may need to prove your cost basis or an insolvency exclusion long after the year it was issued.

What do I do if I receive a 1099-A?

Keep the form with your tax records and use it when you file. Treat the foreclosure or abandonment as a sale: compare the sales price (Box 2 or Box 4, depending on Box 5) to your adjusted basis to find any gain or loss, usually reported on Form 8949 and Schedule D. Watch for a separate 1099-C if the lender also forgave remaining debt.

Tax

Form 1099-A

Form 1099-A, Acquisition or Abandonment of Secured Property, is an IRS information return a lender files when it acquires secured property through foreclosure or learns the borrower has abandoned it. It reports the outstanding loan balance, the property's fair market value, and whether the borrower was personally liable for the debt.

Written & maintained by the Granite team · Last updated June 2026

Overview

Form 1099-A documents the moment a lender takes back or recognizes abandonment of property that secured a loan — most often a home lost to foreclosure. It captures the principal balance still owed, the property's fair market value, the date of acquisition or abandonment, and whether the borrower was personally liable. The IRS treats a foreclosure or abandonment as a sale of the property, so the difference between the loan balance and the property's value can produce a gain or loss the borrower must report.

The lender or creditor that held the secured debt issues the form and files Copy A with the IRS, sending Copy B to the borrower. The borrower receives it after losing the property and uses it to calculate any gain, loss, or canceled-debt income on their tax return — typically on Form 8949 and Schedule D. It is distinct from Form 1099-C (cancellation of debt) and Form 1099-S (proceeds from a normal sale at closing). A single foreclosure can sometimes generate both a 1099-A and a 1099-C.

When you’ll get your Form 1099-A

Your home or other secured property was foreclosed on by the lender
You voluntarily surrendered property to the lender in lieu of foreclosure
You abandoned property and the lender became aware of it
A bank repossessed property pledged as collateral on a loan
You need to report a gain, loss, or canceled debt from the lost property on your tax return

What’s on your Form 1099-A

These are the fields Granite reads and extracts automatically the moment you upload one.

Lender / creditor name: The bank or lender that filed the form after acquiring or learning of the abandoned property.
Borrower name: The name of the borrower who lost the property, as printed on the form.
Box 1 — Date of acquisition or abandonment: The date the lender acquired the property or first knew (or had reason to know) it was abandoned.
Box 2 — Balance of principal outstanding: The unpaid loan principal as of the Box 1 date — original principal only, excluding accrued interest and foreclosure costs.
Box 4 — Fair market value: The property's fair market value as of the Box 1 date, often the foreclosure sale price.
Box 5 — Borrower personally liable: Whether the borrower was personally liable for repaying the debt (recourse vs. non-recourse). For recourse loans you use the lesser of Box 2 or Box 4 as the sales price; for non-recourse loans you use Box 2.
Box 6 — Property description: A description of the secured property — usually the street address for real estate, or type/make/model for personal property.

How long to keep it

At least 7 years

A 1099-A can trigger reported gain or canceled-debt income, so keep it with the rest of that year's tax records past the IRS audit window. If the property was your home, hold it permanently alongside the closing statement and mortgage payoff records — you may still need to prove basis or insolvency years later.

How Granite handles your Form 1099-A

Drop a 1099-A into Granite and it reads the form, extracts the lender name, principal balance (Box 2), fair market value (Box 4), liability flag (Box 5), and property description, then files it into your tax-year collection and links it to the property entity. The address surfaces alongside your mortgage and closing documents, so when you reconstruct the foreclosure for your return — or an auditor asks years later — every related document is one search away.

FAQ

Form 1099-A: common questions

What is a 1099-A?: A 1099-A is an IRS form a lender files when it acquires property through foreclosure or finds it has been abandoned. It reports the unpaid loan balance, the property's fair market value, and whether you were personally liable. You use it to figure any gain, loss, or canceled-debt income from losing the property on your tax return.
What is Form 1099-A used for?: Form 1099-A tells the IRS — and you — that a lender acquired secured property through foreclosure or learned it was abandoned. Because the IRS treats this as a sale, the form supplies the figures you need to calculate a gain or loss: the outstanding loan balance in Box 2 and the property's fair market value in Box 4. You typically report the result on Form 8949 and Schedule D.
What is the difference between a 1099-A and a 1099-C?: A 1099-A reports the acquisition or abandonment of secured property — the lender took back the collateral. A 1099-C reports actual cancellation of debt, where the lender forgives what you still owe. A single foreclosure can generate both forms, sometimes combined onto one document; the 1099-A covers the property transfer, the 1099-C the forgiven balance.
Do you have to pay taxes on a 1099-A?: Not automatically. Receiving a 1099-A doesn't by itself mean you owe tax, but the foreclosure is treated as a sale, so you may have a reportable gain, loss, or canceled-debt income. Box 5 — whether you were personally liable — determines whether you use Box 2 or Box 4 as the sales price. Consult a tax professional for your specific situation.
How long should I keep a 1099-A?: Keep a 1099-A at least 7 years, since the foreclosure can produce reported gain or canceled-debt income that the IRS may review. If the property was your primary home, retain it permanently with your closing statement and mortgage records — you may need to prove your cost basis or an insolvency exclusion long after the year it was issued.
What do I do if I receive a 1099-A?: Keep the form with your tax records and use it when you file. Treat the foreclosure or abandonment as a sale: compare the sales price (Box 2 or Box 4, depending on Box 5) to your adjusted basis to find any gain or loss, usually reported on Form 8949 and Schedule D. Watch for a separate 1099-C if the lender also forgave remaining debt.

Sources

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