If a property was closing on May 8th and last year's taxes were $7,200, how much would be credited to the buyer?

To determine how much would be credited to the buyer for last year's property taxes, first, you need to calculate the daily tax amount based on the total property tax for the year. The last year's taxes were $7,200, and to find the daily tax rate, divide this amount by the number of days in the year, which is typically 365.

Calculating the daily tax rate:

$7,200 ÷ 365 days = $19.7260274, which can be rounded to approximately $19.73 per day.

Next, you need to determine how many days the property was owned by the seller during the year before the closing date of May 8th. From January 1 to May 8 is 128 days (31 days in January, 29 in February for a leap year, 31 in March, 30 in April, and 8 in May).

Now, calculate the total taxes incurred by the seller for the time they owned the property:

$19.73 per day × 128 days = $2,529.44.

Since the buyer is responsible for the property taxes from the closing date forward, you should subtract the seller's portion from the total taxes paid. The buyer is therefore entitled