There is no specific screen for entering information from Form 1099-A, Acquisition or Abandonment of Secured Property. You will have to evaluate the information reported on a Form 1099-A to determine whether it should be entered, and where it should be reported.

The taxpayer, when disposing of property, may have to file one or more of the following forms:

• Schedule D, Capital Gains and Losses.

• Form 4797, Sales of Business Property.

• Form 8824, Like-Kind Exchanges.

• Form 8949, Sales and Other Dispositions of Capital Assets

The tax consequences of abandonment of property that secures a debt depend on whether you were personally liable for the debt (recourse debt) or were not personally liable for the debt (non-recourse debt).

More information on Forms 1099-A, 1099-C, and 982, and related topics is available in Publication 4681 and Publication 544.

Recourse debt

If the taxpayer abandons property that secures a debt for which the taxpayer is personally liable (recourse debt) and the debt is canceled, the taxpayer will realize ordinary income equal to the canceled debt. This income must be reported unless one of the exceptions or exclusions applies. See the instructions with Form 982 and it is separate from any amount realized from the abandonment of the property. See Drake Tax - 1099-C: Cancellation of Debt and Form 982 for details.

Non-recourse debt

If the taxpayer abandons property that secures debt for which the taxpayer is not personally liable (non-recourse debt), the abandonment is treated as a sale or exchange. The amount realized is the amount of the non-recourse debt. If the amount realized is more than the taxpayer's adjusted basis, then a gain has occurred. If the taxpayer's adjusted basis is more than the amount realized, then a loss has occurred.

Loss from abandonment of business or investment property is deductible as a loss. The character of the loss depends on the character of the property. The amount of deductible capital loss may be limited.

The taxpayer cannot deduct any loss from abandonment of a home or other property held for personal use.