Real Estate Math

Property taxes are prorated at closing on a 365-day year. Closing is on March 31 and the seller owes the full year's taxes of $4,380. How much is the seller's proration credit to the buyer (January 1 through March 31)?

A$360
B$1,080✓ Correct
C$1,095
D$3,285

Explanation

90 days (January 1–March 31: 31+28+31=90 days). Daily tax rate = $4,380 ÷ 365 = $12.00/day. Seller's proration = 90 × $12.00 = $1,080.

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