When will 1099-C be issued for deed in lieu?

You haven't provided enough information to give you any specific answer. In general, however, a taxpayer does not incur discharge of indebtedness income until the debt obligation is forgiven. Just because you gave a deed in lieu of foreclosure doesn't mean you don't have a continuing debt obligation to the lender. Only if, as part of the transaction, the lender agreed to release you from further liability, would you potentially have discharge of indebtedness income. Additionally, the property was worth something. To the extent of the value of the property, there will be no discharge of the debt without consideration. For example, if the property was worth $100,000 and the amount owed was $100,000 and the lender agreed to accept the property in satisfaction of the debt, there would be no discharge of indebtedness income. Instead, essentially, you sold the property to the lender for $100,000. If, however, the property was worth $100,000 and the amount owed was $200,000 and the lender agreed to take the property in satisfaction of the debt, then there may be discharge of indebtedness income.

Depends on the details. If you are in, or this pertains to Michigan you are welcome to call Musilli Brennan Associates to potentially retain our firm.