A deed shows a transfer price of $401,500. Using the Illinois state transfer tax rate of $0.50 per $500 or fraction thereof, what is the total state transfer tax due?
Correct Answer
C) $401.50
$401,500 ÷ $500 = 803.0 exactly — but the fraction-thereof rule requires rounding any remainder up to the next whole unit. Since 803.0 is already a whole number, there are 803 taxable units. 803 × $0.50 = $401.50. This is the correct Illinois state transfer tax due under 35 ILCS 200/31-10.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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