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Reporting Form 1099-A on an individual return

Intuit

Reporting Form 1099-A on an individual return

This article will help you determine where to enter a Form 1099-A in an individual return. Each 1099-A is different, and reporting them on a tax return will vary depending on the taxpayer's situation. 

Before you start:

  • Review IRS Publication 544. This publication will help clarify where the transaction should be reported.
  • Read the instructions on the back of the Form 1099-A that you received. 
  • Check Form 982 instructions to determine what amounts, if any, are taxable, and whether basis in other assets needs to be adjusted.

Reporting Form 1099-A with insolvency

The insolvency exception applies only to debt cancellation income, not to property transferred to satisfy creditors. Gain or loss can result from such transfers. However, in backruptcy, any tax liability that is created by the individual's bankruptcy is taxed to the bankruptcy estate.

To enter the 1099-A in ProConnect Tax Online:

  1. Go to the Input Return tab.
  2. On the left navigation menu, select Income > Schedule D/4797/etc.
  3. Enter the Date acquired, Date sold, Sales price, and Basis of asset at the time of abandonment.
    • ProConnect Tax Online doesn't have specific input fields for Box 2 - Balance of Principal Outstanding, Box 4 - Fair Market Value of Property, or Box 5 - Was Borrower Personally Liable.

If the amount in Form 1099-A box 4 is less than the amount in box 2, and the debt is canceled, you may have cancellation of debt income. See Foreclosure Repossession Quitclaim Short Sale 1099-C 1099-A for more information.

Reporting Form 1099-A abandonment as an ordinary loss

To report the loss on Form 4797:

  1. Go to the Input Return tab.
  2. On the left navigation menu, select Income > Schedule D/4797/etc.
  3. Enter the Date acquired, Date sold, and Cost basis.
  4. Click the Details button.
  5. Scroll down to the Form 4797 section.
  6. Enter the Depreciation allowed (-1=none, triggers 4797) , or enter -1 if no depreciation was allowed.
  7. Check the box Not a Form 1099-B/1099-S transaction.

To report the loss on Form 8949:

  1. Go to the Input Return tab.
  2. On the left navigation menu, select Income > Schedule D/4797/etc.
  3. Enter the Date acquired, Date sold, and Cost basis.
  4. Click the Details button.
  5. Scroll down to the Schedule D section.
  6. Check the box Personal loss.

Related Topics

Foreclosure Repossession Quitclaim Short Sale 1099-C 1099-A

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