Asked by Nicole Ruffner on May 25, 2024
Verified
A home having an annual tax bill of $2,460 was sold at the end of the eighth 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 Proration
The division of property taxes, insurance premiums, or other charges in proportion to time or use.
Annual Tax Bill
The total amount of taxes levied annually by various governmental entities, including federal, state, and local taxes.
- Determine tax reimbursement amounts upon property sale using proration.
Verified Answer
DM
Learning Objectives
- Determine tax reimbursement amounts upon property sale using proration.