What is the exam-ready answer?
| Official syllabus topic | XI.A.3 Calculations for Transactions: Real property tax and other prorations |
|---|---|
| Official PSI area | Real Estate Calculations |
| Published weight | 7% of the 100-question national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual calculation. Follow the stated facts, units, time basis, and rounding instruction.
Formula and variables
| Symbol or term | Meaning |
|---|---|
| Year basis | 360 days for the banker-year method or 365 days for a non-leap actual-year method |
| Responsible days | Days allocated to the seller or buyer under the stated closing-day convention |
| Annual amount | The annual tax, rent, interest, or expense being allocated |
Step-by-step method
- Underline the stated 360-day, 365-day, or actual-calendar instruction.
- Determine who receives closing day under the question's convention.
- Count the responsible days using 30-day months for a banker year or actual dates for a calendar year.
- Divide the annual amount by the stated basis and multiply by responsible days.
- Decide debit and credit direction separately from the arithmetic.
Georgia-specific distinction
Worked examples
Example 1: Compare the two year bases
Scenario. Annual tax is $7,300 and 90 days are allocated to the seller. Compare 360-day and 365-day calculations.
- 360-day amount = $7,300 / 360 x 90 = $1,825.
- 365-day amount = $7,300 / 365 x 90 = $1,800.
Answer. The 360-day result is $1,825 and the 365-day result is $1,800.
Reasonableness check. With the same annual amount and day count, the smaller 360 denominator produces the larger daily rate.
Example 2: Banker-year day count
Scenario. Using 30-day months and seller owning through April 15, count seller days from January 1.
- January through March = 3 x 30 = 90 days.
- Add 15 April days.
- Seller period = 105 days.
Answer. Use 105 seller days under the stated banker-year convention.
Reasonableness check. Do not substitute the 31-day calendar months when the question specifies 30-day months.
Common exam traps
- Assuming 360 days when the question says actual days
- Using actual month lengths inside a 30-day-month calculation
- Counting closing day for both parties or neither party
- Getting the dollar amount right but reversing debit and credit direction
Original practice questions with detailed explanations
These original instructional questions map to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Write the setup before opening the explanation.
Question 1Annual property taxes are $5,400. Closing is May 20, and the seller owns closing day. Using a 360-day year with 30-day months, what is the seller's share of the tax from January 1?
- A. $2,071.23
- B. $2,085.00
- C. $2,100.00
- D. $3,300.00
Show answer and explanation →
Answer: C. $2,100.00
The seller has 4 x 30 + 20 = 140 days, and $5,400 / 360 = $15 per day, so the share is $2,100. Dividing by 365 gives $2,071.23, which ignores the stated banker year. $2,085 comes from leaving closing day out of the seller's count.
Question 2Using a 360-day year with 30-day months, the seller is responsible from January 1 through August 15, inclusive. How many days is the seller charged?
- A. 224
- B. 225
- C. 227
- D. 240
Show answer and explanation →
Answer: B. 225
Seven full months at 30 days is 210, plus 15 August days, for 225 days. 227 is the actual calendar count, which the stated 30-day-month convention replaces. 240 treats August as a full month.
Question 3A lease's annual rent is $7,200. The contract prorates on a 365-day year, and the buyer is owed rent for 73 days. Rounding only the final answer to the cent, what is the buyer's share?
- A. $1,436.07
- B. $1,440.00
- C. $1,440.29
- D. $1,460.00
Show answer and explanation →
Answer: B. $1,440.00
$7,200 / 365 x 73 = $1,440.00, because 73 days is exactly one-fifth of a 365-day year. $1,460.00 comes from dividing by 360, which ignores the contract's stated basis. Rounding the daily rate to $19.73 before multiplying produces $1,440.29.
Ready to move on?
You have this calculation down when all of these are true.
- I identify the year basis before finding a daily rate.
- I count days under the correct month convention.
- I allocate closing day exactly once.
- I separate the amount calculation from debit-credit direction.
- I do not invent a universal Georgia default.
Recommended next lesson
Continue with Calendar-Day Proration Step by Step. The next lesson drops the banker year and counts real calendar days, including a 29-day February in a leap year, so you can run the same proration when the contract says actual days.
Return to the complete calculation hub, formula sheet, or mixed math drill.