On a sale of real property, if the buyer pays the real estate taxes for the entire year, the seller's amount realized must be increased to reflect that portion of the taxes attributable to the seller.

Question

Quizplus · Accepted Answer

This is because the seller would have had to pay for those taxes if the property had not been sold, so the buyer reimbursing the seller for that portion of the taxes should increase the amount realized by the seller.

On a Sale of Real Property, If the Buyer Pays