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Key Takeaways. All real estate sales and transfers must be reported to the IRS. Form 1099-A is typically used to report the transfer of foreclosed or abandoned property. Lenders must submit a copy of Form 1099-A to the IRS and another to the borrower.
Form 1099-A, Acquisition or Abandonment of Secured Property, is an informational form used to report foreclosure on a property. You might receive this form if your mortgage lender foreclosed on your property and canceled some or all of your mortgage, or sold your property in a short sale.
Form 1099-C must be filed regardless of whether the debtor is required to report the debt as income. The debtor may be an individual, corporation, partnership, trust, estate, association, or company.
When it is taxable nonbusiness debt, you'll use the copy of the 1099-C to use to report it on Schedule 1 of Form 1040 as other income.
Form 1099-A, Acquisition or Abandonment of Secured Property, is an informational form used to report foreclosure on a property. You might receive this form if your mortgage lender foreclosed on your property and canceled some or all of your mortgage, or sold your property in a short sale.
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Note: You must also file Form 1099-NEC for each person from whom you withheld any federal income tax (Box 4) under the backup withholding rules regardless of the amount of the payment. For each person to whom you have paid the following during the year (Form 1099-MISC): Rents (Box 1)
In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs.
You'll use the amount in Box 1 on your Form(s) 1099-NEC to report your self-employment income. Instead of putting this information directly on Form 1040, you'll report it on Schedule C.
The IRS considers consulting or contractor income as business income that needs to be entered on a Schedule C. If you have self-employment income from a 1099-NEC, which is the case with most Form 1099-NECs, you'll need to report the income on Schedule C.
More In Forms and Instructions File Form 1099-A for each borrower if you lend money in connection with your trade or business and, in full or partial satisfaction of the debt, you acquire an interest in property that is security for the debt, or you have reason to know that the property has been abandoned.

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