The tax rate is $0.25 for any value of $500 or a fraction thereof specified in the return under section 31-25 of the Property Tax Code (35 ILCS 200/31-25). 55 ILCS 5/5-1031(a). The recorder collects taxes before registering the taxable deed or fiduciary document. 55 ILCS 5/5-1031 County transfer duties are subject to the same exemptions as State transfer duties. 55 ILCS 5/5-1031 Sale transaction: An illustration may show the effects that a municipal real estate transfer tax may have. If a home had a purchase price of $500,000, the seller would have to pay a total of $750 in taxes before calculating the municipality`s transfer tax obligation, $500 for the state ($0.50 per $500) and $250 for the county ($0.25 per $500). Transfer taxes are separate from collection fees and mortgage taxes, which are in addition to transfer taxes. Registration fees are usually a small lump sum, while mortgage registration taxes are a percentage of the selling price, for example transfer taxes .B. In order to calculate the charge of real estate transfer tax when selling a property, you must first know the rate of real estate transfer tax. Transfer duty rates are often calculated per monetary unit of the sale price.
The filing of the declaration of transfer and the payment of land transfer tax are required at the time a deed of transfer of ownership of immovable property is subject to registration, or within three (3) working days of the transfer, whichever comes first. 35 ILCS 200/31-25. The transfer declaration must be signed by at least one of the sellers and also signed by at least one of the buyers in a transaction or by the lawyers or representatives of the sellers or buyers. 35 ILCS 200/31-25. Transfer taxes are generally assessed as a percentage of the sale price or market value of the property that changes hands. State laws generally describe land transfer taxes as a fixed rate for every $500 of the value of the property. You may be responsible for transfer taxes at several levels of government, depending on where the property is located. In Illinois, the seller is typically charged real estate transfer tax, which is levied on the seller`s proceeds at closing. Note, however, that tax liability may be changed during negotiations.
There is an exception to this standard: although real estate transfer tax cannot be deducted when selling personal property, it can be deducted as a workload if the property is used as a rental apartment or as a real estate investment. The City of Chicago levies its own tax on the privilege of transferring ownership or economic interest in the city`s real estate, regardless of whether the agreement or contract providing for the transfer is entered into in the city. Chicago, Illinois Code of Ordinances Section 3-33-030 (A). The tax rate is $3.75 per $500 of the transfer price or a fraction of the price of the property or economic interest in real estate. Chicago, Illinois Code of Ordinances Section 3-33-030 (A). The tax shall be payable, whichever comes first, on the delivery or registration of the deed, assignment or any other instrument of transfer. Chicago, Illinois Code of Ordinances Section 3-33-030 (B). The obligation to pay the tax rests with the buyer, beneficiary, assignee or other purchaser; However, if the purchaser is exempt from tax only under State law, the incidence of the tax and the obligation to pay are transferred to the transferor. Chicago, Illinois Code of Ordinances Section 3-33-030 (C). It is the duty of the person liable for payment of the tax to affix the stamps to the correct number and name on the front of the document, transfer or any other act of transfer. Chicago, Illinois Code of Ordinances Section 3-33-040 (B).
(a) acts constituting transfers of immovable property made before 1 January 1968 but registered after that date and fiduciary documents issued before 1 January 1986 but registered after that date. 35 ILCS 200/31-45 (a). Illinois levies a tax on the privilege to transfer: (1) ownership of real estate in Illinois; (2) an economic interest in real estate in Illinois; or (3) a controlling interest in a real estate company that owns real estate in Illinois. The price is 50 cents for each value of $500 or fraction of $500 specified in the declaration required in sections 31 to 25. 35 ILCS 200/31-10. If the transfer document indicates that the transfer is subject to a mortgage, the outstanding mortgage balance at the time of the transfer is not included in the tax base. 35 ILCS 200/31-10. The tax is payable if the transfer is made through one or more related transactions or concerns one or more natural or legal persons and regardless of whether a document is registered or not. 35 ILCS 200/31-10. Real estate transfer taxes are usually paid at the time of closing sales, whether they are part of the closing costs of the buyer or seller. In addition to state and regional taxes, municipalities may impose specific requirements (e.g. B the payment of a canal or water bill), as well as a transfer tax on the privilege of transferring ownership of immovable property, the transfer of economic interests in real estate and the privilege of transferring a majority stake in a real estate company.
In addition, real estate transfer taxes can be used to reduce the seller`s tax risk. This is achieved by offsetting any capital gains realized on the sale. (n) if the transfer is compulsory. 35 ILCS 200/31-25. In addition, an additional fee of $1.50 per $500.00 of the transfer price or part thereof will be levied on payments made on or after April 1, 2008 to provide financial assistance to the Chicago Transit Authority („CTA“). This additional tax is called the „CTA part“ of the Chicago Home Ownership Transfer Tax, and the $3.75 tax is called the „neighborhood.“ (a) the value of the property transferred in that manner or the economic interest in real estate in Illinois; The Department of Revenue sells the tax stamps to the recorder, who then sells the stamps for the prescribed purpose. 35 ILCS 200/31-15. The recorder attaches the tax stamps to the certificate or any other taxable instrument before or after admission, at the request of the scholarship holder. 35 ILCS 200/31-20.
Because a seller must provide the buyer with an act that can be updated, the seller usually pays the transfer duties of the state and region. .