Real Estate Math

A NH property closes on March 15. Annual property taxes of $6,000 have been paid by the seller for the full year (January 1–December 31). How much does the buyer owe the seller for the tax proration at closing?

A$4,783.34✓ Correct
B$4,520.55
C$1,424.66
D$1,500.00

Explanation

Days remaining after March 15 through December 31: 291 days (March 16–Dec 31). Buyer owes seller for 291 days: ($6,000 / 365) × 291 = $16.

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