What effect does the property tax apportionment have on kate

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Sally owns real property for which the annual property taxes are $9,000. She sells the property to Kate on March 9, 2017, for $550,000. Kate pays the real property taxes for the entire year on October 1, 2017.

Problem a: How much of the property taxes can be deducted by Sally and how much by Kate?

Problem b: What effect does the property tax apportionment have on Kate's adjusted basis in the property?

Problem c: What effect does the apportionment have on Sally's amount realized from the sale?

Problem d: How would the answers in parts (b) and (c) differ if the taxes were paid by Sall

Reference no: EM132763255

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