The attached files are samples of the 2010 E-File Magic Version of the 1099-A and 1099-C form. These forms are used by both the corporate efile service E-File Magic software and our processing bureau when preparing your data for mailing.
Excerpt: Section references are to the Internal Revenue Code unless otherwise noted.
"Instructions for Borrower
Certain lenders who acquire an interest in property that was security for a loan or who have reason to know that such property has been abandoned must provide you with this statement. You may have reportable income or loss because of such acquisition or abandonment. Gain or loss from an acquisition generally is measured by the difference between your adjusted basis in the property and the amount of your debt canceled in exchange for the property, or, if greater, the sale proceeds. If you abandoned the property, you may have income from the discharge of indebtedness in the amount of the unpaid balance of your canceled debt. You also may have a loss from abandonment up to the adjusted basis of the property at the time of abandonment. Losses on acquisitions or abandonments of property held for personal use are not deductible. See Pub. 4681 for information about foreclosures and abandonments.
Property means any real property (such as a personal residence); any intangible property; and tangible personal property that is held for investment or used in a trade or business.
If you borrowed money on this property with someone else, each of you should receive this statement."
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