Chicago closing costs and property taxes: build a transparent seller worksheet

Separate the categories before totaling them

Start with price, then show loan payoff, agreed compensation, transaction charges, negotiated credits, property-tax or other adjustments, and any reserves or holdbacks supported by the agreement. Label estimates and identify who supplies the final amount. Preparation and moving matter to your household even when they do not appear on the settlement statement.

Do not use a universal net percentage. The property, agreements, debts, and transaction terms determine the calculation. Keep a current worksheet so an offer comparison uses the same assumptions each time.

• Identify actual and estimated amounts.
• Keep credits and charges separate.
• Show costs outside closing too.

Use the right property and tax year

Confirm the PIN or other property identifiers for every interest being transferred and obtain current bill and payment information. A parking interest may need separate attention. Distinguish assessed value, exemptions, bills, and payment status; each represents a different part of the tax record.

Have the closing allocation explained from the signed agreement and applicable records. Do not turn a customary proration approach into a universal rule or assume the buyer will receive the seller's exemptions. The relevant-year eligibility and future ownership circumstances need their own review.

• Match each parcel to the sale.
• Check payment and delinquency information.
• Read the agreed tax allocation.

Coordinate payoff and city transfer steps

Request payoff information through the authorized closing process rather than treating a statement balance as final. Clarify dates and any additional loans or liens with the appropriate reviewer. Keep private account information in secure transaction channels.

For Chicago transfers, coordinate the applicable Full Payment Certificate and other required steps with the closing team. City guidance connects the certificate with utility-account clearance and transfer documentation. Confirm the current procedure and status; an application underway is not the same as a certified document ready for use.

• Request current payoff figures.
• Track unresolved liens through title review.
• Confirm completed city transfer requirements.

Keep income-tax review outside the cash arithmetic

IRS home-sale guidance addresses gain and potential exclusion using ownership, use, and other facts. Cash received at closing is not the same as taxable gain. Keep purchase, improvement, sale, and any rental-use records available for the preparer handling the tax question.

Review inherited or shared-interest situations separately, using the relevant basis and ownership facts. No universal exclusion or tax-free outcome is promised here. The final closing statement supports the records, while the applicable tax-year rules determine the reporting and calculation.

• Save the final settlement statement.
• Keep basis and improvement evidence.
• Obtain individualized tax review when it matters.

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