A taxpayer who lost property to foreclosure during the year brings a Form 1099-A to their tax appointment. Box 5 of the form is checked, indicating that the taxpayer was personally responsible for repaying the debt. This informs the tax preparer that the taxpayer: Cannot have taxable income associated with this event. Cannot have ordinary income from this event, but may have a capital gain. Does not need to report the information on their tax return unless they also received a Form 1099-C. May be responsible for any remaining balance due on the mortgage, even after the foreclosure and sale is complete