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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1100 Legends Club Drive
Mount Pleasant, SC 29466
The Legends At Mt Pleasant
Residential

MLS# 18020090 / Active
1 br, 1 ba, 836 sqft

This 1bd 1ba condo is located conveniently in the Legends at Mt. Pleasant. It is an exclusive, gated community close to Charleston National Golf Co... 

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$167,000
Provided courtesy of Brand Name Real Estate

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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$575,000
Provided courtesy of Harbins Two, Inc

212-A Village At Wild Dunes
Isle Of Palms, SC 29451
Wild Dunes
Residential

MLS# 18018330 / Active
2 br, 2 ba, 1229 sqft

Beautiful Two bedroom end-unit in The Village of Wild Dunes, a Four Diamond Award winning property. The Village Complex is the latest addition to W... 

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$509,000
Reduced -$10,000
Provided courtesy of Wild Dunes Real Estate, LLC

619 Double Eagle Trace
Seabrook Island, SC 29455
Seabrook Island
Residential

MLS# 18016763 / Active Contingent
1 br, 1 ba, 1 half bath, 817 sqft

SHORT SALE OPPORTUNITY! Enjoy the views of the golf course while sitting on the back deck of this 2-story townhome. 1 Bedroom/1.5 bathrooms with... 

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$89,000
Reduced -$10,000
Provided courtesy of Carolina One Real Estate

142 Traders Station Road
Summerville, SC 29486
Sangaree
Residential

MLS# 18016327 / Active Contingent
3 br, 2 ba, 1 half bath, 1644 sqft

LOWEST PRICE in Traders Station and so much potential! Traditional two story just waiting for you to restore it to it's former beauty. Inviting fro... 

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$147,000
Provided courtesy of RE/MAX Pro Realty

2583 Otranto Road
North Charleston, SC 29406
Northwood Estates
Residential

MLS# 18016282 / Active Contingent
3 br, 2 ba, 1606 sqft

Handyman Special - 3 bedrooms 2 bath brick ranch with converted garage. (if exact square footage is important, buyer should measure; According to t... 

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$125,000
Provided courtesy of Carolina One Real Estate

412 Sparkleberry Lane
Ladson, SC 29456
Summerhaven
Residential

MLS# 18015792 / Active Contingent
4 br, 2 ba, 2173 sqft

Lots of potential with this 1 story home in Dorchester 2 School District with 4th bedroom over the garage. Fenced in yard, 2 car garage, fireplace,... 

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$189,900
Provided courtesy of ChuckTown Homes, LLC

108 Lisa Drive
Summerville, SC 29485
Greenhurst
Residential

MLS# 18015461 / Active Contingent
3 br, 2 ba, 1025 sqft

Cute 1 story brick ranch on large lot with 1 car garage. This would be a great house for an investor! Lots of potential. 

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$80,000
Provided courtesy of Carolina One Cane Bay/ Nexton

110 Conquerors Lane
Moncks Corner, SC 29461
Highways 17-a / Old 52 / New 52
Residential

MLS# 18014515 / Active Contingent
4 br, 2 ba, 1432 sqft

Outstanding Opportunity to Own a SHORT SALE 4BR/2BA on .78 Acres in Moncks Corner with Easy Access to S Live Oak & Old Whitesville Road. Priced to ... 

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$110,000
Provided courtesy of Keller Williams Realty Charleston

718 Royall Avenue
Mount Pleasant, SC 29464
Old Village
Residential

MLS# 18014472 / Active
4 br, 3 ba, 1 half bath, 3959 sqft

One of the most secluded settings in the Old Village. Beautiful mature landscaping surrounds this spacious home. Versatile floor plan allows for fi... 

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$1,195,000
Reduced -$100,000
Provided courtesy of The Cassina Group

7210 Mossy Creek Lane
Hanahan, SC 29410
Tanner Plantation
Residential

MLS# 18014018 / Active Contingent
4 br, 2 ba, 2 half bath, 2420 sqft

This is a special home with wonderful Charleston curb appeal. Three covered porches, 10 foot ceilings downstairs, 9 ft upstairs, open floor plan, b... 

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$399,900
Provided courtesy of AgentOwned Preferred Group

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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$195,000
Provided courtesy of Harbins Two, Inc

4293 Club Course Drive
North Charleston, SC 29420
Coosaw Creek Country Club
Residential

MLS# 18013491 / Active Contingent
5 br, 3 ba, 1 half bath, 3972 sqft

Home priced to sell. This is a Wonderful Opportunity, a Great Deal, Great Neighborhood and its ready for your family's touch. The home is priced ac... 

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$339,000
Provided courtesy of Brand Name Real Estate

181 Blackwater Way
Moncks Corner, SC 29461
Fairmont South
Residential

MLS# 18013031 / Active Contingent
4 br, 2 ba, 1 half bath, 2891 sqft

Located in the heart of Moncks Corner, you will be close to schools, shopping, and restaurants! Walking in you are greeted by smooth ceilings, crow... 

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$255,000
Provided courtesy of RE/MAX Alliance

4437 Clovewood Street
Ladson, SC 29456
Woodside Manor
Residential

MLS# 18012640 / Active
4 br, 2 ba, 1 half bath, 1480 sqft

Great opportunity for investor or owner with some vision. Home is HANDY MAN special, but with a little sweat equity, can easily be turned into a re... 

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$79,900
Provided courtesy of BHHS Southern Coast Real Estate

193 Golf View Lane
Summerville, SC 29485
Highlands Of Legend Oaks
Residential

MLS# 18012628 / Active Contingent
2 br, 2 ba, 1550 sqft

Make this beautiful, like new construction your home! Everything throughout the entire townhome is new; flooring, paint, fixtures, appliances, and ... 

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$165,000
Provided courtesy of CRP Real Estate LLC

2068 Ashburton Way
Mount Pleasant, SC 29466
Park West
Residential

MLS# 18012078 / Active
6 br, 4 ba, 1 half bath, 4859 sqft

Gorgeous Waterfront property on Toomer Creek with beautiful views. Golf course across the creek enhances the view and privacy in this serene locati... 

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$1,099,000
Reduced -$51,000
Provided courtesy of Carolina One Real Estate

6231 Rolling Fork Road
North Charleston, SC 29406
Woodhill Place
Residential

MLS# 18011968 / Active
2 br, 2 ba, 922 sqft

Not far from Boeing, Navy Weapons Station, and Trident college. Screened in porch, fireplace, and high ceilings. Great opportunity. Needs carpet ... 

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$70,000
Reduced -$5,000
Provided courtesy of BIG Realty, LLC

328 Whispering Breeze Lane
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 18010261 / Active
4 br, 2 ba, 1 half bath, 2744 sqft

Don't wait for new construction!!! Welcome Home!!! This beautiful four bedroom two and a half bath home sits on a corner lot with scenic views. Thi... 

More Details

$309,900
Reduced -$10,000
Provided courtesy of Carolina One Cane Bay/ Nexton

287 Decatur Drive
Summerville, SC 29483
Cane Bay Plantation
Residential

MLS# 18009781 / Active Contingent
4 br, 3 ba, 1 half bath, 2379 sqft

Appointments must be confirmed with co-list agent. This is a short sale with tenants in place until July 29 2018. 

More Details

$229,000
Provided courtesy of Carolina One Real Estate

406 Clarine Drive
Goose Creek, SC 29445
Boulder Bluff
Residential

MLS# 18009293 / Active Contingent
3 br, 1 ba, 1 half bath, 1037 sqft

Back on market This is a short sale. Home needs extensive work. Lots of items in back yard that need to be removed. It has a 3br/1.5 bath. Bank app... 

More Details

$80,000
Provided courtesy of Brand Name Real Estate
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 07-23-2018 1:02pm 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 2018 Charleston Trident Multiple Listing Service, Inc. All rights reserved.
Commercial Sale/Lease: Copyright 2018 South Carolina commercial MLS, Inc. All rights reserved. Last updated on 07-23-2018 1:02pm 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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"I did not know there was a contest, so when Charleston City Paper readers voted me as their favorite Realtor, it was really nice. Charleston is a beautiful place, but the people here are what make living here so great!" - Nat Wallen

The Carolina One™ Sign

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Every aspect of what makes a sale successful has been carefully dissected for your benefit. Even down to what colors are most memorable and recognizable together on the Carolina One Real Estate sign.

Drone Photography

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Coming Soon Program

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With nearly 1000 agents, I will share your homes as a "coming soon" offering in our private Facebook group. Your home will be exposed to all of the buyers Carolina One agents are working with and will sell your home faster, and for more money... and this may even happen before it is placed on the market.

A Secure Lockbox

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The latest technology is utilized to ensure your home is easily accessible and completely secure. You can rest assured that your home will only be accessed by licensed SC Realtors, on your time frame, and on your specific terms.

Showing Appointments

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Handling the day-to-day showing appointments is an integral part of the sales process. Nat is able to efficiently arrange showings designed to follow the guidelines that you determine.

High-Quality Photography

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A Professional Description

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Careful attention to details will ensure your home is described and presented in the best light possible. By describing your home accurately and positively, Nat will work with YOU as the seller to craft the best feature and benefit list possible.

Carolina One™ Marketing

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Your home sale will benefit with the Carolina One team at work. Through a variety of different mediums, the fully staffed marketing department works to expose your home to all buyers coming into the Charleston area.

The Caravan Tour

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Nat Wallen will arrange a Carolina One agent tour of your home. Agents will become familiar with what your home offers by seeing it in person, and can share this information with their clients. In addition, agent feedback provides insightful opinions on the asking price and what will aid in the process.

The “Now Showing” System

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Using Carolina One’s exclusive “Now Showing System,” Nat will proactively contact agents currently looking for a home like yours. This proprietary software system will locate agents currently working with buyers that fit the price range and area for your home.

Office Notifications

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Free Home Warranty

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An American Home Shield home warranty will be placed on your property at no cost to you. This coverage is provided to you while your home is listed with Nat Wallen of Carolina One Real Estate.

Multiple Listing Service

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Buyer E-mail Notifications

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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.

Mass Realtor Syndication

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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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