Real Estate Math

A Mississippi property owner pays annual property taxes of $1,800. The closing occurs on September 30. Using the 365-day method, how much does the seller owe the buyer for taxes (for the period Jan 1–Sep 30, 273 days)?

A$1,200
B$1,348✓ Correct
C$1,350
D$900

Explanation

Daily rate = $1,800 ÷ 365 = $4.9315/day. Seller's share = $4.9315 × 273 = $1,346.30 ≈ $1,348 ( The seller owes the buyer a credit for taxes accrued through the day of closing.

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