A Florida closing occurs on October 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 $4,725, what seller debit for taxes is used?
Correct Answer
C) $3,740.62
With taxes paid in arrears and the day of closing assigned to the seller, count the seller's days through the closing date. Daily tax is $13.12, and 285 seller days produces a seller debit of $3,740.62.
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Previous Question
Compliance case Harbor Folder frames the issue this way. 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 $4,380, what seller debit for taxes should appear on the closing statement?
Next Question
A Florida closing occurs on February 1 in a nonleap year. Use a 365-day year, assume taxes are paid in arrears, and assign the day of closing to the buyer. If the annual tax estimate is $2,880, what is the seller's tax debit?