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.

 

 

Modify Search Criteria
Displaying results 1-21 of 3765
18 Photos 1010 Lovebug Lane Summerville, SC 29485

1010 Lovebug Lane
Summerville, SC 29485
Summers Corner
Residential

MLS# 24028611 / Active
4 br, 2 ba, 1 Half Bath, 1997 Sqft

*Estimated March 2025 Completion* Our Sweetgrass floor plan a spacious two-story home that features a contemporary open layout among the family roo... 

More Details

$369,235
Provided courtesy of Lennar Carolinas, LLC
59 Photos
Open House: Sat Nov 16th, 11:00am - 1:00pm
1052 Old Field Drive Summerville, SC 29483

1052 Old Field Drive
Summerville, SC 29483
The Ponds
Residential

MLS# 24028609 / Active
2 br, 2 ba, 2131 Sqft

THIS IS IT! The beautiful, meticulously maintained, turnkey dream home you've been looking for! This 2020 Kolter-built Fir model sits on a fully fe... 

More Details

$589,000
Provided courtesy of Realty ONE Group Coastal
25 Photos 158 Emerald Isle Drive Moncks Corner, SC 29461

158 Emerald Isle Drive
Moncks Corner, SC 29461
Moss Grove Plantation
Residential

MLS# 24028608 / Active
4 br, 2 ba, 1 Half Bath, 2480 Sqft

Discover your dream home in Moss Grove Plantation neighborhood of Moncks Corner, SC. This charming move-in-ready residence eliminates the waiting g... 

More Details

$385,000
Provided courtesy of Keller Williams Realty Charleston West Ashley
33 Photos 1400 Ocean Boulevard UNIT 104-A Isle Of Palms, SC 29451

1400 Ocean Boulevard UNIT 104-A
Isle of Palms, SC 29451
Oceanside
Residential

MLS# 24028607 / Active
2 br, 2 ba, 960 Sqft

Beautiful, updated FIRST FLOOR condo in Isle of Palms, SC just steps from the beach and the pool! Welcome to your turnkey beach home just outside o... 

More Details

$677,500
Provided courtesy of Keller Williams Realty Charleston West Ashley
17 Photos 210 Denham Street Summerville, SC 29486

210 Denham Street
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 24028606 / Active
5 br, 3 ba, 1 Half Bath, 3110 Sqft

The Winston is our largest and most popular plan! This amazing two-story home showcases a total of five bedrooms and is perfect for large or growin... 

More Details

$613,465
Provided courtesy of Lennar Carolinas, LLC
16 Photos 525 Pauline Drive Bonneau, SC 29431

525 Pauline Drive
Bonneau, SC 29431
Bonneau Estates
Residential

MLS# 24028604 / Active
3 br, 2 ba, 1140 Sqft

Recently updated! Approximately 1140 Sq Ft 3 Bedroom 2 Full Bath Manufactured Single Wide. Living Room, Kitchen w/New Appliances, Dining Area, Prim... 

More Details

$189,900
Provided courtesy of Carolinas Full Service Realty Inc
43 Photos 1024 Wading Point Boulevard Huger, SC 29450

1024 Wading Point Boulevard
Huger, SC 29450
French Quarter Creek
Residential

MLS# 24028602 / Active
4 br, 2 ba, 1862 Sqft

**Home has never been lived in!** This charming home offers a peaceful retreat surrounded by nature's beauty. Step inside to a welcoming, sunlit sp... 

More Details

$529,000
Provided courtesy of The Boulevard Company, LLC
50 Photos 627 Cloudbreak Court Charleston, SC 29412

627 Cloudbreak Court
Charleston, SC 29412
Cloudbreak Court
Residential

MLS# 24028601 / Active
4 br, 2 ba, 1 Half Bath, 2620 Sqft

Couldbreak Ct. is a rare find. This stunning Charleston single home with three porches makes it the ideal outdoor indoor living space. This home fe... 

More Details

$925,000
Provided courtesy of Carolina One Real Estate
66 Photos 125 Westover Drive Goose Creek, SC 29445

125 Westover Drive
Goose Creek, SC 29445
Crowfield Plantation
Residential

MLS# 24028600 / Active
4 br, 2 ba, 1 Half Bath, 2841 Sqft

Stunning All-Brick Traditional Home in the Hamlets of Crowfield Plantation**Don't miss the opportunity to own this meticulously maintained two-stor... 

More Details

$575,000
Provided courtesy of Keller Williams Key
1 Photos 589 Red Monarch Way Moncks Corner, SC 29461

589 Red Monarch Way
Moncks Corner, SC 29461
Cypress Preserve
Residential

MLS# 24028599 / Active
4 br, 3 ba, 2425 Sqft

This home has a great exterior look with a front porch and stone surround. The front door opens up to a hallway that will start with the 2 secondar... 

More Details

$434,439
Provided courtesy of Lennar Carolinas, LLC
29 Photos 3948 Rhett Park Drive North Charleston, SC 29405

3948 Rhett Park Drive
North Charleston, SC 29405
Horizon Village
Residential

MLS# 24028597 / Active
3 br, 2 ba, 1 Half Bath, 1506 Sqft

Tucked away just one mile from Park Circle, this 3-bedroom, 2.5-bathroom townhome in Horizon Village offers the perfect blend of style, comfort, an... 

More Details

$415,000
Provided courtesy of Keller Williams Realty Charleston
15 Photos 231 Abercom Place Drive Moncks Corner, SC 29461

231 Abercom Place Drive
Moncks Corner, SC 29461
Abbey Walk
Residential

MLS# 24028595 / Active
2 br, 2 ba, 1 Half Bath, 1304 Sqft

Welcome home to the Millstream! This 2BD 2.5BA townhome features our Modern Farmhouse package! This includes beautiful trim details, luxury vinyl p... 

More Details

$280,424
Provided courtesy of DFH Realty Georgia, LLC
21 Photos 1007 Colonial Pines Drive Ladson, SC 29456

1007 Colonial Pines Drive
Ladson, SC 29456
Tall Pines
Residential

MLS# 24028594 / Active
3 br, 2 ba, 1794 Sqft

Check out this charming 3 bed 2 bath brick home has a great blend of indoor and outdoor living spaces. This property features a brand new roof, a b... 

More Details

$339,000
Provided courtesy of CRP Real Estate LLC
40 Photos 301 Coming Street UNIT A&B Charleston, SC 29403

301 Coming Street UNIT A&B
Charleston, SC 29403
North Central
Residential

MLS# 24028592 / Active
6 br, 2 ba, 2100 Sqft

Welcome to 301 Coming St., a prime duplex investment opportunity located just around the corner from popular local spots like Little Jack's Tavern,... 

More Details

$950,000
Provided courtesy of Keller Williams Realty Charleston West Ashley
32 Photos 1 Wall Street Charleston, SC 29401

1 Wall Street
Charleston, SC 29401
Ansonborough
Residential

MLS# 24028590 / Active
4 br, 2 ba, 1 Half Bath, 3048 Sqft

Located on the corner of Laurens St. and Wall, 1 Wall Street is one of the last grand homes in Ansonborough to remain untouched. The floor plan is ... 

More Details

$3,339,000
Provided courtesy of Handsome Properties, Inc.
48 Photos 52 Hasell Street Charleston, SC 29401

52 Hasell Street
Charleston, SC 29401
Ansonborough
Residential

MLS# 24028588 / Active
5 br, 3 ba, 1 Half Bath, 4530 Sqft

Welcome to 52 Hasell Street, a classic brick Charleston single home on a spacious 0.16-acre lot in the historic Ansonborough neighborhood. Built ar... 

More Details

$4,195,000
Provided courtesy of William Means Real Estate, LLC
31 Photos 192 Steepbrook Street Summerville, SC 29486

192 Steepbrook Street
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 24028587 / Active
3 br, 2 ba, 1782 Sqft

The lovely Lawrence is a comforting single-story home with 2 secondary bedrooms and bath up front, extended foyer leads to the great room which ope... 

More Details

$467,178
Provided courtesy of Lennar Carolinas, LLC
64 Photos 3028 Argyll Drive Summerville, SC 29483

3028 Argyll Drive
Summerville, SC 29483
The Glen At Summerset
Residential

MLS# 24028585 / Active
4 br, 2 ba, 1 Half Bath, 2572 Sqft

SEEING IS BELIEVING!!! This Fantastic family home in ''move-in '' mint condition offers the best of all worlds...comfort, elegance & space!!The mai... 

More Details

$398,700
Provided courtesy of Miler Properties, Inc.
41 Photos 49a Morris Street UNIT #25 Charleston, SC 29403

49a Morris Street UNIT #25
Charleston, SC 29403
Radcliffeborough
Residential

MLS# 24028583 / Active
3 br, 2 ba, 1 Half Bath, 1449 Sqft

This move-in ready, modern townhouse in Radcliffeborough offers a blend of sophistication and style reiminiscent of a Charleston single house. Feat... 

More Details

$995,000
Provided courtesy of Daniel Ravenel Sotheby's International Realty
44 Photos 2420 Raymond Avenue North Charleston, SC 29406

2420 Raymond Avenue
North Charleston, SC 29406
Residential

MLS# 24028580 / Active
4 br, 2 ba, 1 Half Bath, 1787 Sqft

Investor Special or Dream Home Opportunity. This is your chance to own a stunning 4-bedroom, 2.5-bath home, built in 2021 by AA Custom Homes LLC. W... 

More Details

$429,000
Provided courtesy of Seabrook Island Real Estate
23 Photos 205 Torslanda Lane Summerville, SC 29486

205 Torslanda Lane
Summerville, SC 29486
Petterson Meadows
Residential

MLS# 24028578 / Active
4 br, 2 ba, 2 Half Bath, 2771 Sqft

BUILDER'S MODEL WITH ALL THE FANCY FINISHES! Located on a large, .2 acre lot with woods on one side, this home has been the jewel of Petterson Mead... 

More Details

$450,000
Provided courtesy of Carolina One 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 EXP Realty LLC 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 11-13-2024 6:20 AM 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 2024 Charleston Trident Multiple Listing Service, Inc. All rights reserved.
Commercial Sale/Lease: Copyright 2024 South Carolina commercial MLS, Inc. All rights reserved. Last updated on 11-13-2024 6:20 AM 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.


This real estate website and IDX data is hosted by Dynamic IDX, LLC (843.637.2411)

Nat Wallen’s Charleston videos attract more customers.


Sell your home with the market leader.

Hey there, thanks for reaching out!
Are schools important to you?
When do you need us?
Your general price point?
Don’t worry... this is not set in stone :)
Want to add a note?
EXPLORE CHARLESTON ON YOUR OWN
Call: 843.708.4488
Hey there, thanks for reaching out!
Are schools important to you?
When do you need us?
Your general price point?
Don’t worry... this is not set in stone :)
Want to add a note?
EXPLORE CHARLESTON ON YOUR OWN
Call: 843-990-1313