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what tax event must take place when a taxpayer receives a Form 1099-A?

what tax event must take place when a taxpayer receives a Form 1099-A?

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Answer #1

If someone borrow money to purchaae property the lender wanted the loan to be secured by the pirchased property. If he abandon the property or stop using the property then it could be said to be the sale of property. If the lender acquires the property or you have stopped using the property then the lender should send you form 1099-A.

In that form the lender informs you the debt you owed, the market value of the property on the date of acquisition and on the date of abandonment of property.

To fill the form you need to calculate your capital gain income or loss. As form 1099-A is only the form sent by lender for the purpose of acquisition and abandonement of property. No other tax details are mandatory.

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