FAQs
Why did I receive a Form 1099?
Tax season can be confusing, especially if your mortgage went through a major change last year. The IRS requires lenders to issue a Form 1099 if a property changes hands in specific ways, or if any portion of a mortgage debt is forgiven.
Depending on your situation, you may receive one of two forms:
- Form 1099-A (Acquisition or Abandonment of Secured Property): You will typically receive this form if your property went through a completed foreclosure or a deed in lieu of foreclosure.
- Form 1099-C (Cancellation of Debt): You will receive this form if any portion of your mortgage debt was officially forgiven or cancelled. This is most common after a short sale, or if you participated in a loan modification program that included a principal reduction.
What should I do with this form?
Because the IRS sometimes considers forgiven debt to be taxable income, we highly recommend sharing this form with a certified tax professional or CPA. They can help you understand exactly how this impacts your specific tax return.
If you have questions about how the amounts on your form were calculated, please contact us so we can review your account details with you.