How much RE tax will have to be paid by seller?

Question

My son bought a house in may 2008. He is now trying to sell it in July 2008 to buy a home from his grandma. How much real estate taxes will he have to credit back to the buyer at closing.

Answer 1

7/12 of last year's taxes.

Answer 2

depend on the date that they are due in your county and what date there is actualy a closing. Most states are due in Sept. or October but only a title agent can give you that informantion since he must bring them current through that adte only

Answer 3

Do you mean property taxes, I would have no idea. The escrow company would have this information.

If this is a capital gain question?

"If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases)."

http://www.irs.gov/businesses/small/indu...

Answer 4

If his taxes are paid into escrow, he probably had to pay a few months in advance to the lender. If taxes are due in January, then he'd be due a refund equal to a couple of months taxes.

If his taxes aren't paid into escrow, the tax bill for the year will be pro-rated between buyer and seller, and the amount he owes for taxes will be deducted from any proceeds he would have been due at the settlement.

Answer 5

He’ll owe May through the month the sale closes.