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If you received a Form 1099-A Acquisition or Abandonment of Secured Property, you need to determine if there has been a cancellation of debt. The lender should have sent you a Form 1099-C Cancellation of Debt if any debt was canceled. If you have not received a Form 1099-C, you may want to contact your lender to determine if any debt has been canceled.

Foreclosure/Repossession

The foreclosure or repossession of property is treated as a sale of property from which you may realize gain or loss. Use the Worksheet for Foreclosures and Repossessions on page 13 of IRS Publication 4681 to compute the amount of any gain or loss to claim.  Where you enter your 1099-A information depends on whether the form you received is for your main home, business property, or investment property.

Main Home

If this was a foreclosure of your main home (any gain computed (that is not excluded due to this being your main home) will be taxable. A loss will not be deductible on your return, since it is personal-use property.):

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Investment Income dropdown, click the Gain or loss on the sale of investments dropdown, then click Sale of your main home.
  3. Continue with the interview process until you reach the screen titled Investment Income - Sale of Main Home, then click Yes.
  4. On the second screen titled Investment Income - Sale of Main Home, click Yes.
  5. On the screen titled Sale of Main Home - Date Acquired/Sold, enter the Date sold (shown in Box 1 of Form 1099-A).
  6. On the screen titled Sale of Main Home - Selling Price, enter the Sales price (from Line 6 of the Worksheet for Foreclosures and Repossessions), and continue with the interview process to enter your information

Business Use

To enter the gain or loss for business property, use the Sale of Business Property Worksheet in the appropriate business section (Schedule C, E, or F).

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Business Income (or Rent or Royalty Income) dropdown, then click Business income or loss from a sole proprietorship, Farming income or loss, or Real estate rental income, whichever applies in your situation.
  3. Click + Add Schedule C, + Add Schedule F, or + Add Schedule E, Pg 1 to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview process to enter your information.

Investment Use

To enter the gain or loss for investment related property (on Schedule D):

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Investment Income dropdown, click the Gain or loss on the sale of investments dropdown, then click Capital gain or loss (Form 1099-B).
  3. Click + Add Form 1099-B to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview process until you reach the screen titled Investment Sales - Transaction Details, and enter your Form 1099-A and Worksheet for Foreclosures and Repossessions information.

Enter the transaction information:

  • Please enter an appropriate description.
  • The Date acquired will be the date you purchased the property.
  • The Date sold will be the date shown in Box 1 (Form 1099-A).
  • The Cost or other basis will be the amount from Line 7 of the Worksheet for Foreclosures and Repossessions.
  • The Sales proceeds will be the amount from Line 6 of the Worksheet for Foreclosures and Repossessions.

Note. If this is personal property (possibilities are a vacation home, timeshare, vehicle and some inherited property), continue to the screen titled Investment Sales - Adjustment Code(s), then select "L - Other Non-Deductible Loss (including Personal Loss)" from the Other adjustment code drop-down to indicate the property is personal-use property. Any gain computed will be taxable; a loss will not be deductible on your return, since it is personal-use property.

Related Links


Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.


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