Real Estate Math (alternative)

A Maryland property's annual property tax bill is $4,800. Taxes are paid in arrears. At closing on July 1, the seller owes the buyer taxes for January 1 through June 30 (6 months). The proration is:

A$1,380
B$2,760✓ Correct
C$3,060
D$5,520

Explanation

Taxes paid in arrears: seller owes for the portion of the year they owned the property. 6/12 × $4,800 = $2,400 (debit to seller, credit to buyer).

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