Final answer:
To determine what part of the $1,800 annual real estate taxes the buyer owes, first calculate the daily tax rate, then the number of days the buyer will own the property, and finally multiply these together to find the buyer owes approximately $986.
Step-by-step explanation:
The annual real estate taxes on a property are $1,800, and we need to determine what part of this amount will be due from the buyer if the property sale closes on June 15th. Since the seller has prepaid the taxes for the entire year, we must prorate the taxes to figure out the buyer's share from June 15 through December 31. Let's assume a standard year with 365 days.
First, we calculate the daily tax rate:
- Total annual taxes: $1,800
- Days in a year: 365
- Daily tax rate: $1,800 / 365 = $4.93 approximately
Now, we count the number of days the buyer will own the property during the tax year, starting from June 15 to December 31:
- June (16 days including the 15th): 16 days
- July: 31 days
- August: 31 days
- September: 30 days
- October: 31 days
- November: 30 days
- December: 31 days
Add these up to find the total number of days:
- Total number of days = 16 + 31 + 31 + 30 + 31 + 30 + 31 = 200 days
Finally, to find out what the buyer owes, we multiply the daily tax rate by the total number of days:
- Buyer's share of the taxes = Daily tax rate * Number of days
- Buyer's share of the taxes = $4.93 * 200 days = $986 approximately
The buyer will therefore owe approximately $986 in property taxes at the time of closing.