If you are considering a real estate short sale of your home, you should be aware that you might receive a form 1099-C for the amount of the lender's losses.

This is considered loan forgiveness in the eyes of the IRS. If you have other assets such as savings and you are not insolvent, you may end up being responsible to pay ordinary taxes on the amount of the 1099-C.

If you settle a debt with a creditor for less than the full amount owed, you may be required to report this forgiven debt as regular income, with certain important exceptions.

The forgiven debts include money owed after foreclosure or property repossession or credit accounts that you don't pay. 

There are exceptions noted below:

If a lender forgives or writes off $600 or more of a debt's principal (the amount not including interest or fees) must send you and the IRS a Form 1099-C at the end of the year. When you file your tax return for the tax year in which your debt was written off, the IRS will require that you report the amount on the form as income.

Fortunately, the Obama administration passed a law stating that if you are short selling your primary residence, you may be exempt from paying taxes even if a 1099 is submitted to the IRS by the lender.

While you may not have received this form from the creditor, the creditor may have submitted one to the IRS anyway. If you don’t list the income on your tax return and the IRS has the information of the transaction on file, you could get a tax bill or, worse, an audit notice. This could end up costing you more than just the original tax bill.

There are several exceptions stated in the Internal Revenue Code. For example, you do not have to report the income on your tax return if the write off of the debt is intended as a gift, you discharge the debt in bankruptcy, or you were insolvent before the creditor agreed to settle or write off the debt. You should consult a qualified tax and legal counsel to see if these circumstances apply.

 

 

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12 Photos 6251 Brandt Street North Charleston, SC 29406

6251 Brandt Street
North Charleston, SC 29406
The Riverway
Residential

MLS# 19015094 / Active
2 br, 1 ba, 1066 Sqft

CALLING ALL FIRST TIME HOME BUYERS AND INVESTORS!!!! This townhome is a great buy! Located on Rivers Ave minutes away from the interstate and shopp... 

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$69,900
Provided courtesy of The Group, LLC
1 Photos 164 Balsam Circle Summerville, SC 29485

164 Balsam Circle
Summerville, SC 29485
Madison Ridge
Residential

MLS# 19014708 / Active
5 br, 2 ba, 1 Half Bath, 2310 Sqft

A 5-Bedroom Gem with spacious sought after Master Bedroom with separate shower/tub with dual vanities on the main level. Upgraded Kitchen with a w... 

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$278,000
Provided courtesy of The Elite Realty Group of SC, LLC
23 Photos 230 Overcup Loop Summerville, SC 29486

230 Overcup Loop
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 19013380 / Active
3 br, 2 ba, 1 Half Bath, 1749 Sqft

Don't miss this opportunity to get into an affordable home in Lindera Preserve within walking distance to the resort style amenities that this grea... 

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$235,000
Provided courtesy of Carolina One Real Estate
32 Photos 453 Foxbank Plantation Boulevard Moncks Corner, SC 29461

453 Foxbank Plantation Boulevard
Moncks Corner, SC 29461
Foxbank Plantation
Residential

MLS# 19010000 / Active
3 br, 2 ba, 1 Half Bath, 2016 Sqft

Welcome to Foxbank Plantation. This two-story home features an open living space with fireplace and separate flex room/dining room. The kitchen boa... 

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$245,000
Provided courtesy of RE/MAX Cornerstone Realty
23 Photos 130 River Landing Drive Charleston, SC 29492

130 River Landing Drive
Charleston, SC 29492
Daniels Landing
Residential

MLS# 19008124 / Active
2 br, 2 ba, 1291 Sqft

** NOW PRICED AT $205,000..WOW! ** THIS UNIT/BUILDING HAS MARSH VIEWS SO MAKE SURE TO PAY ATTENTION CLOSELY! ESPECIALLY WITH OUR ATTRACTIVE ASKING... 

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$205,000
Reduced -$20,000
Provided courtesy of Fred Holland Realty
60 Photos 1906 Park Rd Moncks Corner, SC 29461

1906 Park Rd
Moncks Corner, SC 29461
Pimlico
Residential

MLS# 19005531 / Active
6 br, 4 ba, 4695 Sqft

**Amazing opportunity** This unique 6 bedroom, 4 bathroom home is nestled on a large 0.76-acre lot in the quiet and historic neighborhood of Pimli... 

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$500,000
Provided courtesy of Jeff Cook Real Estate LLC
23 Photos 5886 Ryans Bluff Road North Charleston, SC 29418

5886 Ryans Bluff Road
North Charleston, SC 29418
Covington Hills
Residential

MLS# 18027738 / Active
3 br, 3 ba, 3312 Sqft

3 bedroom, 3 bathroom, 1 story home. Spacious eat-in kitchen with breakfast bar, walk-in pantry and wet bar. LARGE formal dining room and family... 

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$250,000
Reduced -$15,000
Provided courtesy of Carolina One Real Estate
17 Photos 164 Palm Cove Way Mount Pleasant, SC 29466

164 Palm Cove Way
Mount Pleasant, SC 29466
Dunes West
Residential

MLS# 18027640 / Active
2 br, 2 ba, 1 Half Bath, 2175 Sqft

This exquisitely upgraded townhome, located in the exclusive Dunes West gated community has MARSH VIEWS from nearly every window making it a privat... 

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$359,000
Reduced -$10,000
Provided courtesy of Coldwell Banker Residential Brokerage
35 Photos 1704 Hopeman Lane Mount Pleasant, SC 29466

1704 Hopeman Lane
Mount Pleasant, SC 29466
Charleston National
Residential

MLS# 18022328 / Active
2 br, 2 ba, 1 Half Bath, 1920 Sqft

This is a Short Sale, subject to 3rd party approval and being sold ''As Is''. Home is no longer staged; however, it is a beautiful townhome tucked ... 

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$310,000
Reduced -$5,000
Provided courtesy of Carolina One Real Estate
1 Photos 2465 The Haul Over Johns Island, SC 29455

2465 The Haul Over
Johns Island, SC 29455
Seabrook Island
Residential

MLS# 18018610 / Active
3 br, 2 ba, 1 Half Bath, 2514 Sqft

Easy to show! Home needs updates, but in a great location in Seabrook Island. Back porch looks over an Egret estuary and has views of the golf cour... 

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$465,000
Reduced -$30,000
Provided courtesy of Harbins Two, Inc
4 Photos 2945 Cathedral Lane Charleston, SC 29414

2945 Cathedral Lane
Charleston, SC 29414
Old Towne Villas
Residential

MLS# 18013825 / Active
3 br, 2 ba, 1 Half Bath, 2089 Sqft

End unit Townhome located just off of the golf course. Home is conveniently located near hospitals, West Ashley High School, restaurants, grocery s... 

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$185,000
Reduced -$10,000
Provided courtesy of Harbins Two, Inc
30 Photos 5804 Palmetto Drive Isle Of Palms, SC 29451

5804 Palmetto Drive
Isle Of Palms, SC 29451
Wild Dunes
Residential

MLS# 16012207 / Active
2 br, 2 ba, 1231 Sqft

POSSIBLE SHORT SALE! !!!FURNISHED END UNIT WITH GREAT RENTAL HISTORY. THERE IS A WRAP AROUND PRIVATE BALCONY THAT HAS VIEWS OF THE POND AND COURTY... 

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$525,000
Reduced -$25,000
Provided courtesy of Carroll Realty
Residential, Land, Other Disclaimer:

Broker Reciprocity The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Charleston Trident Multiple Listing Service. Real estate listings held by brokerage firms other than Carolina One Real Estate are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers. Last updated on 05-24-2019 11:01 PM EST . The broker providing these data believes them to be correct, but advises interested parties to confirm them before relying on them in a purchase decision. Copyright 2019 Charleston Trident Multiple Listing Service, Inc. All rights reserved.
Commercial Sale/Lease: Copyright 2019 South Carolina commercial MLS, Inc. All rights reserved. Last updated on 05-24-2019 11:01 PM EST est.

Any images related to data from the MLS is the sole property of the MLS and not the responsibility of the owner of this website.


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Multiple Listing Service

Nat Wallen takes great care to provide an engaging description and high-quality photography to share your home’s features with all Charleston area buyers.

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Relocation Notifications

Leading Real Estate Companies of the World will be notified of your home’s availability for sale. Composed of 550 firms, 4,600 offices and 140,000 sales associates in over 30 countries, this group of successful real estate agencies send referrals daily.

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Multiple Websites

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Your home will be shared through various social networking portals. Nat controls several Facebook pages and groups. Your property will be shared on pages like “Charleston, SC” - “Fans of Charleston” - “Fans of MUSC” - “Mt. Pleasant SC”- “The Nat Wallen Team” - ”Nat Wallen Real Estate” and “The Best of Charleston.”


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