Real Estate Taxes

Failed Exchanges: Tax Consequences in Indiana

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Failed Exchanges: Tax Consequences in Indiana

Understanding Failed Exchanges A failed exchange refers to a transaction that does not meet the requirements established by the Internal Revenue Service (IRS) for a like-kind exchange under Section 1031 of the Internal Revenue Code. These exchanges, which allow taxpayers to defer capital gains taxes when they exchange similar types of property, must adhere strictly … Read more

Understanding Documentary Transfer Taxes and Exemptions in Illinois

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Understanding Documentary Transfer Taxes and Exemptions in Illinois

Introduction to Documentary Transfer Taxes Documentary transfer taxes are a crucial element of property transactions in Illinois, designed to impose a tax on the transfer of real estate. These taxes are assessed when property changes ownership, serving as a source of revenue for local governments. In essence, the purpose of documentary transfer taxes is to … Read more