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A sells their house to B on June 1, 2022. B pays A 450,000 in cash for the house. The real estate taxes on the
A sells their house to B on June 1, 2022. B pays A 450,000 in cash for the house. The real estate taxes on the house are $24,000 per year. The taxes are collected in arrears, so B will pay the tax collector $24,000 at the end of the year. For federal income tax purposes how much real estate will A be deemed to pay in 2022? B? What is the purchase and selling price of the house for federal tax purposes?
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