What is closing tax basis prorated for a FL home sold mid-year before official Nov. 1 tax bill?

Asked by Chad, Florida Fri Sep 26, 2008

My question concerns a sale in 2008 in Sept. if the TRIM notice was published in August as to whether the title company is required to use the previous (2007) year's tax rate or if they legally are required to use the typically more 2008 TRIM notice which includes increased exemption & lower appraised value due to market depreciation.

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Kathy Philli…, , Lake Mary, FL
Sun Sep 28, 2008
BEST ANSWER
I think that Larry and Vickie meant to say, that we pay taxes in arrears! But I don't believe that was the answer to your question. I understand that since the TRIM notices aren't the final official tax bill, that the title company would use the 2007 tax bill to do their calculations, but that may vary from title company to title company.
1 vote
Vickie Bruni, Agent, Sun City Center, FL
Sat Sep 27, 2008
In Florida we paid taxes in the rear.
Web Reference:  http://www.thebruniteam.com
2 votes
Lynn Mooney, Agent, Apollo Beach, FL
Sun Sep 28, 2008
Chad, The title company or closing lawyer will use the 2007 tax basis of the property in giving a credit to the buyer for the pro-rated time that you have owned the property for the 2008 tax year, unless your real estate contract dictates to the contrary. As of the closing, the buyer becomes liable for the payment of the taxe for the 2008 tax year. At the same time, it is customary to have the buyer and seller sign an affidavit that they agree to re-pro rate the taxes and the party that is owed money will be compensated by the other party - whether it be the buyer or seller. Most title companies or closing lawyers will re-calculate the proportionate shares when the tax bills have been received at no charge.
Web Reference:  http://www.suncitycenter.com
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