Acquisition or Abandonment of Secured Property — A lender took back property that secured a debt, or you walked away from it.

What does Form 1099-A report?

Information about the acquisition or abandonment of property that is security for a debt for which you are the lender.

What is the reporting threshold for Form 1099-A?

No minimum; every amount is reported

When is Form 1099-A due to the IRS?

On paper, February 28. Filed electronically, March 31. Electronic filing is required once you file 10 information returns, counting every type together.

What Is Form 1099-A? Acquisition or Abandonment (2026)

The short answer

What it reports	Information about the acquisition or abandonment of property that is security for a debt for which you are the lender.
Amounts to report	No minimum; every amount is reported
To the recipient	(To Borrower) January 31
To the IRS, on paper	February 28
To the IRS, electronically	March 31

If one arrives

Treated as a sale of the property. A 1099-C may follow for any debt forgiven on top of it.

The form is how a payer tells the IRS what it paid. Its absence is not permission — income you received is reportable whether or not a form covers it, and a threshold decides only who must file, never what you owe.

Who sends it

A creditor that took back property securing a debt, or learned it had been abandoned, sends it to the borrower. The instructions require it from anyone who lent money "in connection with your trade or business" and then took property securing the debt "in full or partial satisfaction of the debt," or had "reason to know that the property has been abandoned." The creditor does not have to be in the business of lending.

Two cases produce no form:

Personal-use property such as a car, securing a debt of an individual. Property held for investment or used in a business is reported.
A cancellation of $600 or more in the same year, reported on Form 1099-C instead, with the property details in its boxes 4, 5 and 7.

The property is treated as sold

The event the form reports is, for you, a disposal. Topic 431: "If your debt is secured by property, and the creditor takes that property in full or partial satisfaction of your debt, you are treated as having sold that property to the creditor." How the sale is measured depends on the box 5 checkbox.

Were you personally liable?	The sale price	Canceled debt income
Yes (box 5 checked)	The property's fair market value	Any cancelled debt above that value
No (box 5 not checked)	The full amount of the debt	None

Topic 431's example is a business one. A boat bought for business use for $20,000, with a note for $18,000, is repossessed when $14,000 is still owed. The boat is worth $11,000, and depreciation has brought its basis down to $10,000.

If you were personally liable: the sale is at $11,000, a $1,000 gain over the $10,000 basis. The remaining $3,000 of debt, when cancelled, is ordinary income.
If you were not: the sale is at the $14,000 still owed, a $4,000 gain, and "You have no ordinary income from cancellation of the debt."

A gain on business property like this goes on Form 4797; see Schedule D for how capital assets differ.

The boxes

Box	What it holds
1	Date the lender acquired the property, or knew it had been abandoned
2	Balance of principal outstanding at that date
4	Fair market value of the property
5	Checked if you were personally liable for repayment
6	Description of the property

For a foreclosure or similar sale, the instructions say that without clear evidence to the contrary, the fair market value "is considered to be the proceeds of the sale." Not every box is covered here.

Common questions

My business equipment was repossessed. Did I sell it?

For tax purposes, yes. Topic 431: when a creditor takes property that secures your debt, "you are treated as having sold that property to the creditor." You may have a gain or a loss on it, and possibly canceled debt as well.

What does the box 5 checkbox change?

Almost everything about the tax. Checked, you were personally liable: the sale is at the property's fair market value, and any debt left over that is cancelled is separate income. Unchecked, you were not: the sale is at the full amount of the debt, and there is no canceled debt income.

Is box 2 income?

No. Box 2 is the principal still owed when the property was taken or abandoned. It is one of the figures you need to work out the gain or loss; it is not an amount you received.

I got a 1099-C instead. Is the 1099-A missing?

Not necessarily. A creditor that cancels a debt of $600 or more in the same year as a foreclosure or abandonment "may file Form 1099-C only," completing its property boxes in place of a separate 1099-A.

My car for personal use was taken back. Why was there no 1099-A?

The instructions do not require one: "No reporting is required for tangible personal property (such as a car) securing a loan to an individual and held for personal use." A vehicle used in your business is reported.

This page is for educational purposes only and does not constitute tax, legal, or financial advice. It covers United States federal reporting. Consult a qualified tax professional about your situation.

What is Form 1099-A?