Real Estate Math
A Tennessee property has annual taxes of $4,200 and the closing is on April 15. If taxes are paid in arrears at year end, how much does the seller owe the buyer in prorated taxes at closing?
A$1,208✓ Correct
B$1,575
C$1,050
D$2,800
Explanation
Days elapsed: January (31) + February (28) + March (31) + April 15 = 105 days. Daily tax = $4,200 ÷ 365 = $11.
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