Under what circumstances would a lender file Form 1099A with

Under what circumstances would a lender file Form 1099-A with the IRS and send the taxpayer a copy?

1-When the buyer defaults on a loan secured by real property.

2-When the lender forecloses or repossesses the taxpayer\'s real property.

3-When the seller needs to report mortgage interest paid.

4-When the lender has canceled debt of the buyer over $600

Solution

Answer :- Option 2). When the lender forecloses or repossesses the taxpayer\'s real property.

Explanation :- When the lender forecloses or repossesses the taxpayer\'s real property, Lender will file form 1099-A with Internal Revenue Service (IRS). Lender will also send one copy of form 1099-A to the taxpayer.

Conclusion :- Option 2).