Sounds like short sale to me. I assume your lender approved this. If you are required to pay any taxes on the unpaid amount of your loan, the lender will send you a 1099-C. Until then, you have nothing to report. If/when you get a 1099-C, pay attention to what tax year that form is for. Otherwise, if no 1099-C is issued to you, you have nothing to report. Overall, I would expect a 1099-C. Assuming you closed on the short sale in 2024, you may receive a 1099-C next year, for the 2024 tax year.
