What is prorating? Are the seller's property taxes being prorated?
Yes, property taxes allocated to the seller on a closing statement are prorated.
Prorating means calculating the part of your property tax that is attributable to the number of days you both owned and occupied your home during 2012. Enter the entire amount of property taxes allocated to the seller, and we'll automatically prorate the amount based on the dates you enter.
Example: You sold your home on July 1, 2012 and were allocated $1,000 of the total $2,000 property tax bill for the year. If you lived in your home from January 1, 2012 to July 1, 2012, then the full $1,000 allocated to you would be eligible for the Homestead Credit. However, if you moved out of your home on March 31, 2012, then you only occupied your home for 3 months out of the 6 months that you owned the home in 2012, so only $500 of the property taxes will be eligible for the Homestead Credit.
Prorating means calculating the part of your property tax that is attributable to the number of days you both owned and occupied your home during 2012. Enter the entire amount of property taxes allocated to the seller, and we'll automatically prorate the amount based on the dates you enter.
Example: You sold your home on July 1, 2012 and were allocated $1,000 of the total $2,000 property tax bill for the year. If you lived in your home from January 1, 2012 to July 1, 2012, then the full $1,000 allocated to you would be eligible for the Homestead Credit. However, if you moved out of your home on March 31, 2012, then you only occupied your home for 3 months out of the 6 months that you owned the home in 2012, so only $500 of the property taxes will be eligible for the Homestead Credit.
