Question
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month. Answer: $288
I'm not understanding why the seller would get a credit for the time he owned the house instead of getting credit for the time he wont be owning the house. The answer I chose was $852 which is the amount I figured the seller would get back since he will not be owning the house after April 1. Please explain!
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