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On Form 1099-A, the lender reports the amount of the debt owed (principal only) and the fair market value of the secured property as of the date of the acquisition or abandonment of the property. You, the debtor, use these values to determine a gain or loss on the disposition of the property and report the gain or loss on Form 1040, Schedule D (PDF), and on Form 4797 (PDF), Sales of Business Property.
If you think the 1099A is incorrect you must take that issue to the lender that sent you the 1099A.
You report as if you sold the rental property.