Home Selling in 60089>Question Details

Daniel, Home Seller in 60089

I purchased a house a year ago, and try to sell it to move nearby. What would be sales tax in Lake county, IL?

Asked by Daniel, 60089 Thu Jun 9, 2011

House was purchased as REO and has equity of 50,000. Can I sell it and use the equity to purchase another house? (carry over...)

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Daniel, I read the comment by Evan. He's is right about the 'transfer taxes'. However, I might also suggest that you discuss with your accountant the tax benefits/penalties of selling a home before you have lived in it for a minimum of two years. I remember hearing there is a 2-year window of owning a home before moving on but I'm not an accountant. You really want to discuss the timing of selling with your accountant before commiting to a move. If you don't have one, get one! They can be a life saver / tax saver!
Also, there's lot of inventory to pick from at this time, interests rates a fantastic but if you are penalized with taxes simply because you moved too soon, there goes your savings. Nothing worse than paying penalties/taxes on a move that could have been postponed by even a few months to help eliminate that back end surprise.
1 vote Thank Flag Link Thu Jun 9, 2011
There is no "sales tax" but you do pay transfer taxes. The state tax is $1 per $1,000. County tax is $.25 per $500. Buffalo Grove tax is $3 per $1,000.
Web Reference: http://www.realtyfreak.com
1 vote Thank Flag Link Thu Jun 9, 2011
Sharon is right, 4.50 per thousand sales price. I suggest you add the improvements you made since purchase and project a net proceeds and see if it is worthwhile. Transaction costs can add up to 10% by the time you add in commissions, title policy, staked survey attorney fees and transfer taxes. I doubt you can cover your costs given how recently you purchased the home. Best to stay put if not for a job relocation transfer. Why would you move nearby?
Happy to help if you would like me to follow up offline.
Thanks!
0 votes Thank Flag Link Tue Jun 28, 2011
Hi Daniel,

I am a Buffalo Grove agent and the answer is $4.50 per thousand. State and county taxes are $1.50 per thousand and the transfer tax in Buffalo Grove is $3.00 per thousand. You also have title, attorney fees, taxes which are paid in arrears in Illinois, and several other costs. The best thing to do is to have a realtor come in and see what the value of the property is and the net out the closing costs. I am at Coldwell Banker in Buffalo Grove and my direct line is 847-465-3628. You can also check me out on the web at http://www.northernillinoishomes.com or email me at sharron@northernillinoishomes.com I hope this is helpful to you and just give me a call.
0 votes Thank Flag Link Thu Jun 9, 2011
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