Real Estate Math

A NH seller closes on April 30. Annual property taxes of $8,400 (paid in December for the full year) have been prepaid. How much does the seller receive as a credit?

A$5,600 (seller's share for remaining 8 months)✓ Correct
B$2,800 (seller's share for 4 months: Jan–Apr)
C$8,400
D$700

Explanation

If taxes are prepaid for the full year and closing is April 30, the seller has paid 8 months (May–December) that belong to the buyer. Credit to seller = (8/12) × $8,400 = $5,600.

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