Learn about transfer taxes in Kane County: A quick guide

Is transfer tax deductible?

Unfortunately, the transfer tax does not comply with the tax relief. However, you may be able to lower the amount you pay in capital gains tax.

Capital gains are defined as profits earned from the sale of your home or the sale of your property, just like profits from the sale of other assets, paid federal taxes.

According to the IRS, sellers can choose to treat paid transfer taxes as sales expenses, allowing them to subtract those expenses from the price of the house’s closing sale. By doing so, they can reduce the capital gains tax owed to any profits earned.

Kane County Transfer Tax Free

Some sellers may find themselves eligible for exemptions from transfer tax, depending on their specific circumstances and location.

These exemptions can greatly affect the overall cost of transferring ownership of the property. Here is a brief overview of the circumstances in which the transfer tax does not apply:

• Transfers property involving government agencies or certain nonprofit organizations.
• A transaction that guarantees debt or other obligations.
• Revisions to previously recorded contracts, no other considerations were given.
• Sales price is less than $500.
• Deeds are transactions of tax deeds.
• Release property that secures debt.
• Partition behavior.
• Due to business restructuring, transactions between parent companies and their subsidiaries or transactions between subsidiaries of the same parent company.
• Transfer from subsidiary to its parents in exchange for stock cancellation or surrender.
• The bankruptcy plan confirms the property involved.
• Property in a business area for commercial or industrial purposes.
• Transfer to the lender by collateral foreclosure or in lieu of foreclosure.
• Properties under the Family Plan.
• Transfers between legally recognized partners under court orders for separation or divorce proceedings.

Estimated Kane County Transfer Tax

Ready to sell your home in Kane County? You should consider using Homelight’s net income calculator. This tool account will help you estimate closing costs such as transfer taxes, agency fees, and any updates you have to the property, giving you a good idea of ​​potential profits.

Additionally, working with top real estate agents can provide valuable insights that meet your needs. Homelight can connect you with professionals today, giving you confidence and peace of mind to sell your home easily.

Editor’s Note: This article is for educational purposes only and does not constitute legal or financial advice. Contact and reference to the Kane County District Tax Service or attorney should not be considered endorsed.

Title image source: (Zander Betterton/Unsplash)