Real Estate Math

A Utah home sells for $475,000. Property taxes are prorated at $4,200/year. Closing is on September 1. The seller pays taxes in arrears. What is the seller's tax proration?

A$2,800✓ Correct
B$2,975
C$3,150
D$3,500

Explanation

Taxes for Jan 1 through Aug 31 (8 months) are the seller's responsibility. Monthly rate = $4,200/12 = $350.

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