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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24 Photos 201 Green Oak Court Goose Creek, SC 29445

201 Green Oak Court
Goose Creek, SC 29445
Brickhope Greens
Residential

MLS# 19031820 / Active
3 br, 2 ba, 1 Half Bath, 2214 Sqft

Amazing Opportunity to own this COLONIAL Inspired home which sits on a small pond and has lovely curb appeal in GOOSE CREEK!!! GRAND Collumns welco... 

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$219,900
Provided courtesy of Brand Name Real Estate
10 Photos 1232 Chicorie Way Charleston, SC 29412

1232 Chicorie Way
Charleston, SC 29412
Quail Run
Residential

MLS# 19028785 / Active
3 br, 2 ba, 1236 Sqft

Own a home in Quail Run in James Island! Lots of potential in this 3 bedroom home with separate dining, kitchen and family room. New roof 2015. T... 

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$287,000
Reduced -$3,000
Provided courtesy of Charleston Homes
32 Photos 1155 Braddock Avenue North Charleston, SC 29405

1155 Braddock Avenue
North Charleston, SC 29405
North Charleston
Residential

MLS# 19026349 / Active
4 br, 3 ba, 1908 Sqft

LOCATION + OPPORTUNITY! Establish roots in popular Park Circle. Price is reflective of immediate need for roof repair and confirmed electrical, p... 

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$250,000
Reduced -$25,000
Provided courtesy of Coldwell Banker Residential Brokerage
46 Photos 35 Eastlake Road Mount Pleasant, SC 29464

35 Eastlake Road
Mount Pleasant, SC 29464
Ion
Residential

MLS# 19024548 / Active
4 br, 4 ba, 2 Half Bath, 5665 Sqft

One of a kind lakefront home available in the prestigious I'On community of Mount Pleasant. Located just minutes to downtown shopping, walking dis... 

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$1,495,000
Reduced -$130,000
Provided courtesy of Radekopf And Associates
32 Photos 163 Hickory Ridge Way Summerville, SC 29483

163 Hickory Ridge Way
Summerville, SC 29483
Hickory Ridge
Residential

MLS# 19022904 / Active
5 br, 2 ba, 1 Half Bath, 2658 Sqft

** NOW AVAILABLE *** GORGEOUS TURNKEY ONE OWNER HOME IN A HIGH DEMAND AREA AND PRICED TO SELL! OPPORTUNITIES LIKE THIS DONT COME AROUND OFTEN! *** ... 

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$250,000
Reduced -$10,000
Provided courtesy of Fred Holland Realty
106 Photos 2356 Darts Cove Way Mount Pleasant, SC 29466

2356 Darts Cove Way
Mount Pleasant, SC 29466
Dunes West
Residential

MLS# 19022737 / Active
6 br, 5 ba, 2 Half Bath, 6417 Sqft

** LUXURIOUS HOME DESIGNED FOR INDOOR/OUTDOOR ENTERTAINMENT ON PRIME LOT IN DUNES WEST. ** WATER VIEWS OF WAGNER CREEK FROM NEARLY EVERY ROOM WITH ... 

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$1,295,000
Reduced -$100,000
Provided courtesy of Carolina One Real Estate
25 Photos 8750 Pitchfork Lane Summerville, SC 29485

8750 Pitchfork Lane
Summerville, SC 29485
Wescott Plantation
Residential

MLS# 19016332 / Active
3 br, 2 ba, 1 Half Bath, 1960 Sqft

Located in charming Wescott Plantation, you will be close to schools, shopping, and restaurants! Walking in you are greeted by smooth ceilings, a c... 

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$212,000
Increase +$12,000
Provided courtesy of RE/MAX Alliance
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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$320,500
Reduced -$8,500
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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$295,000
Reduced -$15,000
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 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 11-17-2019 7:03 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 11-17-2019 7:03 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.

Mass Realtor Syndication

NatWallen.com is a heavily used Charleston real estate website. In addition to reaching hundreds of buyers visiting each day, your home will be syndicated to over 3,000 Realtor websites.

Multiple Websites

Your property will be listed on NatWallen.com, CarolinaOne.com, Google, CLRSearch.com, Trulia.com, Realtor.com, HomeFinder.com, FrontDoor.com, HGTV.com, SouthCarolina.com, Overstock.com. Yahoo.com, Fizber.com, Charleston.com, Vast.com, Hotpads.com, AOL.com, etc.

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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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