Question
In: Finance
Suppose a property has estimated real estate taxes for the current year of $4,398.25 dollars and that taxes are paid at the end of the year.
Suppose a property has estimated real estate taxes for the
current year of $4,398.25 dollars and that taxes are paid at the
end of the year. If the property is
being sold on May 25 in a year with 365 days and the buyer and
seller agree to prorate the taxes at the time of closing with the
buyer being responsible for the
day of closing, what amount will be charged to the seller on the
settlement statement?
$1,000.00
$1,735.20
$2,663.05
None of the above
Solutions
Expert Solution
Answer:
None of the above.
Explanation:
The property is being sold on May 25. The seller is responsible for property tax prorated amount for 4 months and 24 days (closing day excluded).
The amount charged to the seller on the settlement statement = (Annual property tax amount / 12) * (4 + 24/30)
= $4,398.25/12 * (4 + 24/30)
= $1,759.30
As such option D is correct and other options A, B and C are incorrect.
jeff jeffy answered 2 years agoRelated Solutions
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Real estate taxes on rental property he owns
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Real estate taxes on his own residence
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Federal income taxes
12,000
State income taxes
4,400
Local city income taxes
400
What amount can Omar deduct as an itemized deduction on his tax
return?
A)
$7,600
B) $10,000
C) $12,400
D) $29,400
LABEL AND SHOW ALL WORK.
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subsequent calculations. Round your final answers to the nearest
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State personal property tax on their automobile (based on value)
$400
Property taxes on land held for long-term appreciation $600
What amount can the Wests deduct as property taxes in
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b. $2,300
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b.
$375,000
c.
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d.
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Accounting subject
a debt of 500 dollars is paid 25 dollars every end of the year for 30...
a debt of 500 dollars is paid 25 dollars every end of
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dont use excel!! manually!!
Tabitha sells real estate on March 2 for $260,000. The buyer, Ramona, pays the real estate taxes of $5,200 for the calendar year
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a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona.
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