A property in Miami closes on July 15th. The annual property taxes of $3,650 have been paid in full by the seller for the entire year. Using the 365-day method and assuming the seller owns the property on the day of closing, what is the tax proration credit due to the seller?
Correct Answer
A) $1,690.00
With $3,650 annual taxes, daily rate = $10. Seller owns Jan 1 through July 15 = 196 days; buyer owns July 16 through Dec 31 = 169 days. Credit to seller = 169 × $10 = $1,690.
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