Ace the Illinois Real Estate Exam 2025 – Unlock Your Property Pro Potential!

The correct answer is based on the Illinois state transfer tax formula, which is calculated per each $500 of the purchase price. In this scenario, the sales price is $295,000.

First, it’s important to determine how many $500 increments are within the sales price:

1. Divide the sales price by $500:

$295,000 ÷ $500 = 590

2. In Illinois, the transfer tax is generally $0.50 per every $500 of the sale price. Therefore, you multiply the number of increments by the tax rate:

590 × $0.50 = $295

However, the way transfer tax is paid can vary based on other factors such as the existing mortgages. In this issue, the seller’s existing purchase money mortgage and the buyer’s assumption of the existing mortgage are pertinent but do not change the computation based on the sales price that is used for the transfer tax.

The total tax owed reflects the unsettled rate applied specifically to the purchase price itself, not net amounts or deductions. Thus, it will be important to remember that while the total computed transfer tax is $295, local rates and additional fees may adjust this number but your final calculation of $295 should remain close