Real Estate Math

A buyer in Arizona closes on March 15. The annual property taxes are $4,380 and are paid in arrears. Using a 365-day year, how much does the seller owe the buyer in a tax proration (January 1 through March 14)?

A$182.50
B$876.00✓ Correct
C$364.00
D$560.00

Explanation

Days from Jan 1 through Mar 14 = 31 (Jan) + 28 (Feb) + 14 (Mar) = 73 days. Daily tax rate = $4,380 ÷ 365 = $12.

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