property tax proration
I noticed the title companies (the ones here I have dealt with anyway) take the number of days the seller occupies and credit the buyer in prorated property tax,
To figure the amount per day they take a 1/2 year amount (typically in the county tax bill for 1 installment), divide by 180 and then multiply by seller occupied days.
My question is, shouldn't the division be by 182.5 days, or 183 days in a leap year? The seller is guaranteed over compensates the buyer by about 1% for this (182.5/180.0).
Before I get too far,
I am trying to claim my property tax deduction (as a buyer) and I would subtract what the title company says the seller has credited me, but I question the accuracy of using 180 days.
As a seller, I also would claim that number for prorated property tax I credited the buyer by what the title company says in the final HUD.. (not likely the one on signing day but the one where they figured the errors and refunded)
thanks