Real Estate Math

A Kentucky closing occurs on September 15. The annual property taxes are $3,600. Using a 365-day year, how much of the tax does the seller owe for their portion of the year?

A$2,580✓ Correct
B$1,800
C$2,050
D$2,125

Explanation

Days from Jan 1 through Sep 15 = 258 days. Seller's share = ($3,600 ÷ 365) × 258 = $9.863 × 258 = $2,544.66.863/day × 258 days = $2,544.66. Using 360-day year: $3,600 ÷ 360 = $10/day × 258 days = $2,580.

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