If you’re selling your Oswego home, you might have questions about transfer taxes. How do they work? How much are they? Who pays for them? Don’t worry. Transfer taxes aren’t complicated, and HomeLight is here to help. Transfer taxes are fees levied by local or state authorities when real property (like a home) changes ownership. Transfer tax rates can differ significantly based on location and can have a big impact on the overall cost of your transaction and your bottom line. This guide will explain how transfer taxes work in Oswego, including their cost, who is liable for them, and any possible exemptions. Additionally, we will explain how transfer taxes can affect your capital gains burden and why working with a real estate agent is a great idea. Real estate transfer taxes are fees charged by state or local governments when property ownership is transferred from one individual to another. According to the Federal Trade Commission, these taxes are due when the title of a property, essentially the document confirming legal ownership, is officially transferred to a new owner. The amount owed in transfer taxes can vary significantly based on the property’s location, as different states, counties, and cities usually have their own rates and regulations. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects. Every city, state, and county has different rules regarding who is liable for transfer taxes. Illinois has no hard and fast rule about transfer tax liability. Generally, it is split between the buyer and the seller, but the only absolute requirement is that it is paid. This extends to Oswego. As such, it’s important to be clear about the terms of the sales agreement, as this will usually dictate transfer tax responsibility.What are transfer taxes?
Who pays for transfer taxes?
