Form 1099-C (continued)

Coordination with Form 1099-A

As mentioned earlier, if a personal residence is foreclosed upon and the debt is canceled in the same year, the taxpayer may receive Form 1099-C only. The required filing information from Form 1099-A will be shown in Form 1099-C. Generally, the gross foreclosure bid price is considered to be the Fair Market Value (FMV). For an abandonment or voluntary conveyance in lieu of foreclosure, the FMV is generally the appraised value of the property.

For a recourse loan, the sale price is the lesser of the balance of the principal debt (mortgage) outstanding or fair market value.