What a 1099-A Form Means and When You'll Receive One

A 1099-A reports when a lender takes back property you financed

A 1099-A is a tax form that reports the foreclosure or repossession of property you bought with borrowed money. The lender files it with the IRS when they take back a house, car, boat, or other asset because you stopped paying the loan. The form tells the IRS the property's fair market value and the date the lender took possession.

You receive a 1099-A when a lender forecloses on real estate or repossesses personal property. The lender is required to send you a copy and file one with the IRS. This matters because the IRS may treat the difference between what you owed and what the property was worth as taxable income — though there are exceptions, particularly for primary residences.

The form itself contains basic information: the property address or description, the date the lender took it back, the fair market value on that date, and the loan balance at the time of repossession. You'll receive it by January 31 of the year after the repossession or foreclosure occurs.

Key Takeaways

• A 1099-A is filed when a lender forecloses on real estate or repossesses a vehicle or other financed property.
• The form reports the property's fair market value and the date of repossession, which the IRS uses to calculate potential taxable income.
• Foreclosures on your primary residence may be excluded from taxable income under federal law, but you must report the 1099-A on your tax return.
• You receive the 1099-A by January 31, and you should include it when you file your taxes that year.

How the IRS treats the difference between loan balance and property value

When a lender repossesses property, they typically sell it for less than you owed on the loan. The IRS calls this difference cancellation of debt, and it can show up as taxable income on your return. For example, if you owed $25,000 on a car and the lender sold it for $15,000, the $10,000 gap might be taxable.

However, federal law excludes debt cancellation from taxable income if the property is your primary residence and the foreclosure happened between 2007 and 2025. This exclusion applies to mortgages only, not to home equity lines of credit or second mortgages. If you may have access to for this exclusion, you still receive the 1099-A, but you report it differently on your tax return.

For other types of property — vehicles, rental homes, investment property — the cancellation of debt is generally taxable. You report it on Form 982 if you have other debts or circumstances that might reduce the taxable amount, or you include it as income on your main tax return.

When you might not receive a 1099-A

Not every foreclosure or repossession results in a 1099-A. If you sold the property yourself before the lender took action, or if you surrendered it voluntarily and the lender did not formally foreclose, you may not receive one. Some lenders also do not file if the property value equals or exceeds the loan balance — meaning there is no cancellation of debt to report.

If you believe you should have received a 1099-A and did not, contact the lender directly. They have the legal obligation to file it. You can also contact the IRS if you need a copy or want to verify whether one was filed in your name.

The difference between a 1099-A and a 1099-C

A 1099-C is similar to a 1099-A but applies to unsecured debt — credit cards, personal loans, medical bills — that a creditor forgives or writes off. A 1099-A specifically reports property that was repossessed or foreclosed. The key difference is that a 1099-A involves collateral (the house or car), while a 1099-C does not.

You could receive both forms in the same year if you have a foreclosure and also had credit card debt forgiven. Each one reports a different type of debt cancellation, and both may affect your taxes. The exclusion for primary residence foreclosures applies only to 1099-A forms, not to 1099-C.

What to do when you receive a 1099-A

Keep the 1099-A with your tax records. If the property was your primary residence and you believe you may have access to for the foreclosure exclusion, you will need to report this on your tax return using Form 982. If the property was not your primary residence, or if you do not may have access to for the exclusion, you may owe tax on the cancellation of debt amount.

Do not ignore a 1099-A. The IRS receives a copy, and if you do not report it correctly, you may receive a notice of underreported income. If you are unsure how to handle it, a tax professional can review your situation and help you file accurately. The form itself does not determine your tax liability — your specific circumstances do — but you must report it.

Frequently Asked Questions

Do I have to pay taxes on a 1099-A for my primary home?

Not if the foreclosure occurred between 2007 and 2025 and the debt was a mortgage on your primary residence. You still receive and report the 1099-A, but the cancellation of debt is excluded from taxable income. This exclusion does not explore to home equity lines of credit, second mortgages, or investment properties.

What if the 1099-A amount seems wrong?

Contact the lender and ask them to review the fair market value and loan balance they reported. If they made an error, they can file a corrected 1099-A with the IRS and send you a corrected copy. Keep documentation of any dispute in case the IRS contacts you.

Can I get a 1099-A if I voluntarily gave the property back to the lender?

It depends on whether the lender formally repossessed or foreclosed. If you straightforward returned the keys and the lender took possession without a legal foreclosure process, they may not file a 1099-A. Ask the lender in writing whether they will file one, since you need it for your tax return.

What happens if I don't report the 1099-A on my taxes?

The IRS will likely notice the discrepancy because they receive a copy of the form. You may receive a notice asking you to explain the missing income or pay additional tax. It is better to report it correctly, even if you believe you may have access to for an exclusion, than to skip it entirely.