Legal Question in Tax Law in Illinois

Re: Tax mistake

For your guideance and guideance to Cyndi Perez Trostin who answered this question previously, there are certain incentive programs offered by various township assessment offices which allow for partial property tax abatements under special circumstances to assist property owners who would not otherwise purchase buildings in blighted areas, or develop properties without having some incentive to do so. These incentive classifications are not "slam dunk" opportunities and must be blessed (approved) by the local municipalities Boards who look to a number of factors before allowing such incentives. For Commercial property in Cook county, for example, where property is normally assessed at 38% of market value, or let's say $38 per $1,000 of market value of the property, the incentive, if granted, would have reduced the taxes to $16 per $1,000 of market value, a substantial savings in terms of tax dollars. Depending on the incentive requested, there may have been a requirement to expend money in the rehabilitation of the property as well. So, the incentive may have come at a cost.

Unfortunately, there are many real estate attorneys who are retained to negotiate contracts, prepare the necessary documentation and conduct the real estate closing but do not consider the ramifications of the new owner of real estate after title is transferred.

Our firm regularly educates other law firms who practice real estate so that attorneys try and provide additional information to their clients as to what to expect once the property is conveyed subsequent to the closing.

The Assessor of Cook County has on his website information about the various classification incentives available for property owners and the guidelines, requirements and forms needed to apply for those incentives.

Visit: http://www.cookcountyassessor.com/info/forms.asp#Select

Re: Tax mistake

I'm not sure what 50% tax break you are talking about. I would recommend that you have a CPA review the returns and see if he can amend the last three years if there is something that was overlooked.

Good luck to you.