Question

This year's property taxes on a parcel are $1,743.25. If a sale of the property is to be closed on

August 12, what is the approximate tax proration that will be charged to the seller based on a 360-day
year?

Answer 1

$1070.16

Explanation:

You want the prorated amount of taxes if the annual amount is $1743.25 and the sale closes August 12, based on a 360 day year.

Months and days

A 360-day year assumes months are 30 days. The tax charged to the seller will be that for 7 months plus 11 days:

(7·30 +11)/360 × $1743.25 = $1070.16

The seller will pay $1070.16 of the tax bill.

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Additional comment

We have presumed the buyer pays the taxes for August 12, the first day they own the property.