What is the tax liability for the buyer if closing occurs on July 30?

When determining the tax liability for a buyer at closing, it's essential to understand how property taxes are typically assessed and prorated. In most jurisdictions, property taxes are assessed on an annual basis, and the amount due can vary based on the closing date relative to the property tax billing cycle.

In this scenario, if closing occurs on July 30, it is likely that the taxes for the current year have already been paid by the seller for the entire billing period, which often runs from January 1 to December 31. Since the buyer is closing at the end of July, this means they will not be responsible for any additional property taxes for the time they own the property until the next assessment period begins. Therefore, the liability of the buyer for property taxes would be minimal or even zero, particularly if the seller has pre-paid the taxes.

Hence, the buyer's tax liability at closing would be $0, as they would not owe any taxes until they experience the next billing cycle. This understanding is crucial in real estate transactions, as buyers should be aware of their obligations concerning property taxes when finalizing a sale.