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 (4887). Please refine your filters for better results.
4488 Highway 162
Hollywood, SC 29449
Rantowles
Residential
MLS# 26017711 / Active
Nestled on 1.68 fully fenced acres in desirable Rantowles, this exceptional 3-bedroom, 2-bath custom French Mediterranean home offers a rare combin...
Reduced -$10,100
2511 Annie Aiden Lane
Charleston, SC 29414
Ferryboat Landing
Residential
MLS# 26017709 / Active
Welcome to a rare new construction opportunity, where luxury living meets the best of the Charleston coastal lifestyle. This stunning 4-bedroom, 3-...
1069 Capersview Court
Awendaw, SC 29429
The Overlook at Copahee Sound
Residential
MLS# 26017708 / Active
Welcome to your slice of paradise at 1069 Capersview Court within the coastal marsh community of The Overlook @ Copahee Sound! This energy star Cer...
Reduced -$20,000
113 Old Creek Court
Goose Creek, SC 29445
Central Creek
Residential
MLS# 26017706 / Active
Ready August! Welcome to Central Creek, Goose Creek`s newest boutique community. This stylish two-story home features a Hardie Plank exterior and o...
Reduced -$9,000
508 Crosswick Street
Summerville, SC 29483
Pineland Preserve
Residential
MLS# 26017704 / Active
Our Dabney B plan, four bedrooms, three-and-one-half bathrooms, with guest suite downstairs and additional powder room. This open floor plan featur...
Reduced -$9,100
605 Crosswick Street
Summerville, SC 29483
Pineland Preserve
Residential
MLS# 26017702 / Active
COMPLETE IN JULY! This is our Cameron B floorplan, three bedrooms, two-and-one-half bathrooms, with a sunroom downstairs great for a dining room or...
Reduced -$7,100
241 Central Creek Drive
Goose Creek, SC 29445
Central Creek
Residential
MLS# 26017701 / Active
Ready August! Situated on a homesite backing to private trees, this thoughtfully designed two-story home offers a warm, inviting feel from the mome...
Reduced -$3,000
209 Fiddleback Drive
Summerville, SC 29486
Hewing Farms
Residential
MLS# 26017699 / Active
Welcome to this beautifully appointed 3-bedroom, 3.5-bath home in the highly sought-after Hewing Farms community of Summerville. Thoughtfully desig...
118 Crosswick Street
Summerville, SC 29483
Pineland Preserve
Residential
MLS# 26017696 / Active
A Showstopper in the luxurious Pineland Preserve community in Summerville!! Our Webster floor plan! On the 1st floor, there`s a a formal dining roo...
248 Central Creek Drive
Goose Creek, SC 29445
Central Creek
Residential
MLS# 26017694 / Active
Ready August! Located in Central Creek, this new Highland plan offers comfortable living on a homesite backing to a peaceful pond. The Hardie Plank...
Reduced -$500
1373 Pinnacle Lane
Charleston, SC 29412
Meridian Place
Residential
MLS# 26017691 / Active
Freshly painted and completely turnkey, this charming townhome is ready for you. This convenient one story home is nestled in the highly-regarded c...
3001 Palmetto Boulevard
Edisto Island, SC 29438
Third Row
Residential
MLS# 26017689 / Active
3rd row, less than 800 feet to the ocean`s edge, this Edisto bungalow is priced to move! Enter thru the covered stairs to the open L/D/K area or en...
63 Montagu Street UNIT A
Charleston, SC 29401
Harleston Village
Residential
MLS# 26017686 / Active
Price Reduction - Luxury Charleston Living in the Heart of Harleston Village! Introducing this stunning newly renovated in 2026 first-floor residen...
556 Hayes Park Boulevard
Johns Island, SC 29455
Hayes Park
Residential
MLS# 26017682 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island`s only pedestrian-scale community that elevates your lifest...
7008 Oak Basin Way
Johns Island, SC 29455
Kiawah River
Residential
MLS# 26017678 / Active
Overlooking Great Oak Basin, this exceptional custom home offers more than 4,300 square feet of luxury living with five bedrooms, five baths, priva...
5718 Glifton Avenue
Ravenel, SC 29470
Palmetto Terrace
Residential
MLS# 26017677 / Active
Now is your chance to own a brand new, all electric, home. Construction will begin in July. Almost like a custom home pick your own exterior (Vinyl...
1042 Lettered Olive Lane
Summerville, SC 29485
Summers Corner
Residential
MLS# 26017676 / Active
The Kensington floor plan is a spacious two-story home features a formal dining room and an open concept living area for easy everyday living on th...
Reduced -$10,150
1757 Zion Road
Dorchester, SC 29437
Residential
MLS# 26017674 / Active
Enjoy Country Living! This gorgeous 3-bedroom, 2-bath home offers 2,303 square feet on a 1-acre lot. Features include a spacious living room with a...
1046 Lettered Olive Lane
Summerville, SC 29485
Summers Corner
Residential
MLS# 26017672 / Active
The adorable Litchfield is a single story with an open layout. The front exterior is graced with a lovely front porch and the 2-car garage sits bac...
Reduced -$10,100
2211 Egret Crest Lane
Charleston, SC 29414
The Colony At Heron Reserve
Residential
MLS# 26017671 / Active
Immaculate first-floor 1BR/1BA condo in the gated community of The Colony at Heron Reserve. Overlooking a private wooded setting, this move-in-read...
163 Pocket Bend Circle
Summerville, SC 29486
Nexton
Residential
MLS# 26017669 / Active
Welcome to 163 Pocket Bend Circle in Midtown at Nexton. Located directly across from Ripple Park, this Bellflower floor plan offers approximately 1...
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 12:02 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.