Avoiding Transfer Tax In Illinois?

I was wondering on a subject to deal, if there was a way to avoid the transfer tax or if it was exempt in any way?

Comments(1)

  • compwhiz20th October, 2003

    If you buy subject-to, the only transfer tax due is on the equity the owner takes out of the house. If there's no equity, there's not tax. In any case, if you give them even 5k equity, you're responsible for whoping $7.50 in tax! The quote from Illinois Dept of Revenue is below:

    "Effective January 1, 1968, a tax is imposed on the privilege of transferring a real estate title or a beneficial interest in a land trust in Illinois. If the property transferred remains subject to an existing mortgage, only the owner's equity (not the amount of the outstanding mortgage) is included in the base for computing the tax."

    The laws haven't changed since 1968.

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