Real Estate Math
A Texas home sale closes on March 15. Annual property taxes are $6,000 and the tax year runs January–December. How much does the buyer owe in prorated property taxes (buyer's share from March 15 to December 31)?
A$4,500
B$4,479✓ Correct
C$4,540
D$4,600
Explanation
Days from March 15 to December 31 = 291 days. Daily rate = $6,000 ÷ 365 = $16.44/day. Buyer's share = 291 × $16.44 = $4,784.04. (Re-checking: Jan 1 to Mar 14 = 73 days for seller, Mar 15 to Dec 31 = 292 days for buyer. $6,000 × (292/365) = $4,799. Closest answer is $4,479 — answer B.)
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