Property Taxes

Question

The taxes on a property were $4,800. The closing took place on June 15th. What is the seller's share of the taxes? Use the 30-day/12 month method to derive your answer and assume the seller owns on the day of closing.

Answer 1

June 15 is 5 months plus 15/30 days = 5.5 months out of 12.  The seller's share would be:

 

(5.5/12)($4800) = _____

 

The buyer pays for the remaining 6.5 months:

 

(6.5/12)($4800) = _______      (= $4800 - the seller's share).

 

A more precise method would be to count the days individually.  In a non-leap year, June 15 is day #166 out of 365 (it'd be day 167 out of 366 in a leap year).  The seller's share would be:

 

(166/365)($4800) = _______