Scenario Harbor Guide raises this Florida point. A Florida closing occurs on March 1. Use a 360-day year, 30-day months, assume property taxes are paid in arrears, and assign the day of closing to the buyer. If the annual property tax estimate is $4,725, what seller debit for taxes should appear on the closing statement?
Correct Answer
A) $787.50
Florida property taxes are commonly treated as paid in arrears, so the seller is debited for the seller's accrued share through the day before a buyer-day closing. Daily tax is $13.12; multiplied by 60 days, the seller debit is $787.50.
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Previous Question
A Florida closing statement uses an annual tax estimate of $4,599 based on the parties' agreed current-year estimate. Using a 360-day year and assigning the day of closing to the buyer at a July 1 closing, what seller debit for taxes is shown?
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A Florida closing occurs on August 15. Use a 360-day year, 30-day months, assume property taxes are paid in arrears, and assign the day of closing to the seller. If estimated annual property taxes are $2,880, what seller debit for taxes is used?