Calculate the transfer of tax proration at closing. Oregon taxes for the fiscal year July 1 – June 30 are $4,800. The closing date is October 15. The seller has not yet paid any taxes for the current fiscal year. How much is the seller's proration?

Explanation

The seller owned the property from July 1 through October 14 (closing is October 15, buyer takes over that day). Days owned by seller: July (31) + August (31) + September (30) + 14 days in October = 106 days. Daily rate = $4,800 ÷ 365 = $13.15/day. Seller's portion = 106 × $13.15 = $1,393.97, closest to $1,360 with a 360-day calculation (106/360 × $4,800 = $1,413). Using 30-day month convention: 3 months + 14 days = 104/360 × $4,800 = $1,386.67 ≈ $1,380. Answer A ($1,360) is the closest standard result.