Please pardon my ignorance
How is form 1099a filed with Form 1040?
How is form 1099a filed with Form 1040?
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Have you looked at the instructions to the borrower on the 1099-A?
This is just like the amounts from a 1099-C except it is for secured property.
This indicates a forced sale of the property, the borrower giving up the property and lender forgiving the debt as the sale price. But there maybe adjustments for changes in FMV or what the lender can sell the property for to recover some of the loan principal.
See IRS Publication 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals) ( http://www.irs.gov/pub/irs-pdf/p4681.pdf) and IRS Publication 4705 Tax Relief for Struggling Homeowners (http://www.irs.gov/pub/irs-pdf/p4705.pdf).
You may also need to look at:
Publication 523, Selling Your Home
Publication 525, Taxable and Nontaxable Income
Publication 544, Sales and Other Disposition of Assets
Publication 551, Basis of Assets
Publication 908, Bankruptcy Tax Guide
Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments
If this is a rental property you treat it like a sale of the property.
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