In a real estate transaction where property taxes are $1,214.00, and the closing is on April 1, how will the taxes be divided?

In a real estate transaction, property taxes are typically prorated between the buyer and the seller based on the closing date. Since the closing is on April 1, the seller is responsible for the property taxes for the portion of the year they owned the property. This means that the seller will be debited for the taxes accumulated up to the closing date, while the buyer will be credited for the taxes they will be responsible for once they take possession of the property.

In this scenario, the seller owns the property from the start of the tax year until the closing date on April 1, meaning they are liable for those taxes during that time period. Therefore, the seller is debited the proportionate amount of the property taxes for the time they held the property, effectively compensating the buyer for prepaid taxes. This is standard practice in real estate transactions to ensure that taxes are fairly allocated based on ownership and occupancy periods.