1040-US: Entering 1099-C information for property that was abandoned and foreclosed on in the same year

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Question

The taxpayer only received 1099-C for property that was abandoned and foreclosed on in the same year. How should the information be entered?

Answer

Enter the data from Form 1099-C in the 1099-C facsimile data entry fields on Screen 1099C. The lender may include information about the abandonment on Form 1099-C instead of on a Form 1099-A. See IRS Publication 4681. If Form 1099-C, Box 7 has data, complete the additional data entry fields in the "Abandoned, Foreclosed, Repossessed Property" section on Screen 1099C. Information entered in this section will generate the Foreclosures and Repossessions Worksheet. An entry in the Basis of transferred property field is required to calculate the Foreclosures and Repossessions Worksheet. The gain or loss generated from the worksheet is transferred to the appropriate form. Using the view from the Treatment field on Screen 1099C allows the user to force treatment of the gain or loss generated from the Foreclosure or Repossession Worksheet.

Related topic: Form 1099-C - Cancellation of debt FAQs (1040)

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