A property sells for $412,300 in Illinois. When calculating the state real estate transfer tax using PTAX-203, how is the taxable consideration converted into the number of $500 units used to compute the tax?
Correct Answer
A) Divide by $500 and round up to the next whole number
The PTAX-203 instructions require the filer to divide the net taxable consideration by $500 and round the result up to the next whole number, regardless of how small the remainder is. For a $412,300 sale, $412,300 ÷ $500 = 824.6, which rounds up to 825 units. This ceiling-rounding method ensures the state collects tax on the full consideration rather than allowing any portion to escape taxation.
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Related Topics & Key Terms
Key Terms:
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A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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