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
Your search returned more than 1500 results (4920). Please refine your filters for better results.
292 Lucca Drive
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 26019093 / Active
Discover the perfect blend of luxury, space, and convenience in this beautifully upgraded 5-bedroom, 4.5-bath home in desirable Summerville. Backin...
107 Lockhart Street
Walterboro, SC 29488
Residential
MLS# 26019090 / Active
Opportunity in Walterboro with room to make it your own! Situated on two parcels totaling approximately 0.6 acres, this property offers mature oak ...
61 Gordon Street
Charleston, SC 29403
Wagener Terrace
Residential
MLS# 26019087 / Active
Listing reflects the existing residence. BAR-approved plans are included in the purchase price, and the building permit has already been applied fo...
1600 Long Grove Drive UNIT #622
Mount Pleasant, SC 29464
Long Grove
Residential
MLS# 26019083 / Active
Location. Location. Location.Enjoy an Isle of Palms lifestyle at a Mount Pleasant price! Perfectly positioned at the last stop before crossing the ...
103 McDuffie Court
Summerville, SC 29486
Sangaree
Residential
MLS# 26019081 / Active
Move-in ready and refreshed from top to bottom! 103 McDuffie Ct welcomes you with fresh paint and LVP flooring throughout, creating a bright, clean...
281 Surfbird Road
Summerville, SC 29486
Nexton
Residential
MLS# 26019077 / Active
If versatility is at the top of your wish list, this home delivers. Designed with both comfort and functionality in mind, this 3-bedroom, 3.5-bath ...
317 Hawthorne Street
Mount Pleasant, SC 29464
Bay View Acres
Residential
MLS# 26019075 / Active
Welcome to the good life in one of Mount Pleasant`s most coveted and walkable neighborhoods.From your front door you can walk to the waterfront res...
4813 Park Place
North Charleston, SC 29405
Park Circle
Residential
MLS# 26019074 / Active
Fantastic opportunity in the heart of Park Circle! This spacious 2,337 sq. ft. brick home offers 5 bedrooms and 3.5 baths with a traditional floor ...
2906 Hartnett Boulevard
Isle of Palms, SC 29451
Residential
MLS# 26019073 / Active
Coffee in hand, begin your morning with a two-block walk to the beach as the sun rises over the Atlantic. Challenge friends to a game of pickleball...
5937 Willard Drive
Hanahan, SC 29410
Belvedere Heights
Residential
MLS# 26019072 / Active
Updated brick ranch in Hanahan! Located in the highly desirable town of Hanahan Proper. A place that just feels like home....a neighborhood that re...
105 Parish Parc Drive
Summerville, SC 29485
Crichton Parish
Residential
MLS# 26019071 / Active
Enjoy cozy living & local fun in this 3-bedroom, 2-bathroom home. The layout features a large inviting living room with cathedral ceilings and fire...
8321 Loggers Run
Charleston, SC 29420
Windsor Hill
Residential
MLS# 26019067 / Active
Beautiful ranch home centrally located in North Charleston. New HVAC and roof. Great structure. Open floor plan with 9 foot ceilings. Great mature ...
169 Huguenot Trail
Huger, SC 29450
French Quarter Creek
Residential
MLS# 26019065 / Active
MOVE IN READY, CLOSE PROXIMITY TO RECENTLY FINISHED COMMUNITY POOL! Tucked along the edge of the Francis Marion National Forest, this beautifully a...
Reduced -$5,100
227 Palmetto Bluff
Mount Pleasant, SC 29464
Grassy Creek
Residential
MLS# 26019064 / Active
Professionally designed by Polish+Pop Interior Design, this exceptional Lowcountry residence offers the perfect blend of timeless Southern charm, m...
2947 Maritime Forest Drive
Johns Island, SC 29455
Kiawah River Estates
Residential
MLS# 26019062 / Active
Live the Kiawah River Estates lifestyle, where mornings begin with golf-course views and days flow effortlessly between nature, leisure, and luxury...
126 Hope Drive
Summerville, SC 29485
Rose Hill
Residential
MLS# 26019061 / Active
Welcome to 126 Hope Drive, where style, quality, and peace of mind come together in this beautifully renovated home in the Rose Hill community. Com...
351 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 26019060 / Active
Beautiful 5 bedroom, 4.5 bath home with a perfect lot which has views of 2 ponds. The gas lanterns and double porches will welcome you to your new ...
201 Clarine Drive
Goose Creek, SC 29445
Beverly Hills
Residential
MLS# 26019059 / Active
If you are looking for a charming brick home on a large lot , this home is for you! This one story, one owner home is conveniently located close to...
Reduced -$1
132 Green Thistle Way
Summerville, SC 29483
Dawson Pointe
Residential
MLS# 26019058 / Active
Ready for move in. Welcome to Dawson Pointe, where modern townhome living meets the ease of condo ownership. This new two-story home is host to an ...
549 Towles Crossing Drive
Johns Island, SC 29455
Opti Isle
Residential
MLS# 26019057 / Active
Set within the private, gated enclave of Kingfisher Island, this waterfront new-construction home presents a rare chance to personalize a brand-new...
120 Speer Street
Goose Creek, SC 29445
Cokers Crossing
Residential
MLS# 26019056 / Active
Welcome home to this spacious property that truly has it all! Nestled on a large lot with an oversized driveway, this home offers both charm and fu...
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 07-10-2026 11:52 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 2026 Charleston Trident Multiple Listing Service, Inc. All rights reserved.