The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/just-for-completeness-again-that39s-actually-34081507.aspx

Subject:  Re: 401K/IRA in probate Date:  12/11/2018  1:01 AM
Author:  vkg Number:  128266 of 128939

Just for completeness again, that's actually a proration between you and the buyer. It's not a payment to the tax collector. Because the buyer will own the property when the taxes become due, the buyer is responsible for the full amount of the tax bill even though they didn't own the property for the full period of time covered by the tax bill. To make things equitable between the buyer and seller, you as the seller are giving the buyer money for the taxes during the time you owned the property. (Substitute "the estate" for "you" as necessary.)

The 2018/2019 tax bill had been issued before escrow closed. I believe, that the 1st installment was paid from buyer's settlement.
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us