# Real Estate Practice : Lesson 3959

By
Education & Training with (retired) TN LIC# 290452

A real estate transaction closes on September 12, 2015.

The taxes for 2015 are \$8752.40 and they haven't been paid yet.

They have to paid by the purchaser.

When the taxes are prorated for the calendar year, what is the amount that has already been paid, and will this amount be a debit or a credit to the purchaser at the closing table?

Will the purchaser owe any taxes for the calendar year and how much if any ?

Take your time. The solution is posted below the wildlife photo.

A. \$6126.65, which is credit to the buyer because this amount was paid prior to the closing date covering 8 months and twelve days of the tax year prior to the purchaser's closing.

Here's how it works:

8752.4 taxes for the year
divided by
360 days
=
24.312222 a day

8752.4 taxes for the year
divided by
12 months
=
729.366667 a month
times
8 months
=
5834.933336 eight months taxes

12 days
times
24.31 a day
=
291.72 for the twelve days of September
+
5834.93 for the eight months onf the tax calendar year
=
6126.65 total prorated credit to the purchaser.

The purchaser will owe \$2625.75 and here's why:

8752.4 total calendar year taxes
minus the prorated amount
6126.65
=
2625.75 total annual taxes owed by the purchaser.

Wasn't that too easy ?

Posted by

Time&Temp Memphis

Legal Disclaimer

The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

committing a real estate crime
click this red button.

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies

Click "HERE" For Today's Question

The

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Groups:
Education
Tags:
theory and practice

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,571,222

## David Saks

May God Bless You, Always. David
*
*
*
*