What Does Tax Proration Mean for Chicago Buyers and Sellers?
Manage episode 151921304 series 1043192
Anant Deoras에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 Anant Deoras 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.
Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report
Selling a home? Click here for a FREE Home Value Report
Kevin Mitrick, an attorney with Spain, Spain, & Varnet P.C., focuses primarily on the representation of buyer and sellers in real estate transactions. Today, he joins me to answer the question, “What is a tax proration?”
In Cook County, taxes are billed bi-annually and based off the previous year. The first installment is always 55% of the previous year's full tax bill. When a transaction closes, there will be a period of taxes that have not been paid yet, generally from the day the last bill was issued through the day of closing. At times, that can be a lengthy period. The goal is to come up with a calculation that both the buyer and seller agree with.
Although that can be difficult, buyers want to maximize the tax credit while sellers want to minimize the tax credit. Generally, the tax credit covers 100% to 110% of the prior year’s bill. That’s the basis for calculating the tax credit.
If you have any questions for Kevin, you can reach him at kmitrick@ssvlegal.com or (312) 788-7684. As always, if you have any real estate questions, give me a call or send me an email. I would be happy to help you!
10 에피소드