Asked by Elise Weidman on May 11, 2024
Verified
A home having an annual tax bill of $1,800 was sold at the end of the ninth month of the taxable year. The seller had already paid the entire tax for the year. How much tax was the seller reimbursed on proration of taxes at the time of the sale?
Tax Bill
A statement from a governmental authority detailing the amount of taxes owed by an individual or entity, specifying due dates and payment instructions.
Proration
The act of distributing or assigning an amount in proportion to a certain measure, often applied in finance and accounting for dividing expenses or revenues.
Taxable Year
A 12-month period for which tax returns are calculated and filed, often aligning with the calendar year or a company’s fiscal year.
- Understand and calculate proration of taxes in real estate transactions.
Verified Answer
AM
Learning Objectives
- Understand and calculate proration of taxes in real estate transactions.