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QUESTION 17 A owns real estate and paid a real estate tax bill of $2,400 covering the period from January 1, 2021 to December 31,
QUESTION 17 A owns real estate and paid a real estate tax bill of $2,400 covering the period from January 1, 2021 to December 31, 2021. A sells the property on April 1, 2021. How should the real estate taxes be treated for tax purposes? (For calculation purposes, use a 360-day year and 30 day month). The prepaid real estate taxes are added to the purchaser's basis and the seller's amount realized on the sale. a. $2,400 is apportioned to the seller who paid the bill b. $1,200 is apportioned to the seller and $1,200 apportioned to the buyer C. $600 is apportioned to the seller and $1,800 to the buyer d. None of the above e
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