The real property taxes on a particular piece of property are $6,000. The taxing period is from January 1 to December 31. The closing is to occur on June 5. Use both the calendar method (actual days in a year) and the banker method ( which assumes 360 days in a year and 30 days in each month) to calculate the amount of taxes that will be debited from the seller's side of the closing statement and credited to the buyer's side. Why is it important for the buyer to understand proration?

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The Answer of The real property taxes on a particular piece of property are $6,000. The taxing period is from January 1 to December 31. The closing is to occur on June 5. Use both the calendar method (actual days in a year) and the banker method ( which assumes 360 days in a year and 30 days in each month) to calculate the amount of taxes that will be debited from the seller's side of the closing statement and credited to the buyer's side. Why is it important for the buyer to understand proration?

The Real Property Taxes on a Particular Piece of Property