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 |
|---|---|
| Actual year days | 365 in an ordinary year or 366 in a leap year when actual-year instructions apply |
| Allocated calendar days | Inclusive day count assigned to the party under the stated closing-day convention |
| Daily rate | Annual amount divided by actual year days |
Step-by-step method
- Confirm that the question requires actual calendar days.
- Determine whether the year is ordinary or leap when that affects the stated method.
- Write who owns closing day and mark it once.
- Add actual days by month for the responsible period.
- Multiply the daily rate by the day count, then separately assign the debit and credit.
Georgia-specific distinction
Worked examples
Example 1: Seller owns through closing day
Scenario. In a non-leap year, annual taxes are $4,380. Closing is April 10 and the seller owns closing day. Use actual days.
- Seller days = January 31 + February 28 + March 31 + April 10 = 100.
- Daily rate = $4,380 / 365 = $12.
- Seller share = 100 x $12 = $1,200.
Answer. The seller's allocated amount is $1,200 before deciding the debit-credit direction from payment timing.
Reasonableness check. One hundred days at exactly $12 per day gives a clean $1,200 result.
Example 2: Buyer owns closing day
Scenario. A non-leap-year closing occurs July 1 and the buyer owns closing day. How many days are allocated to the seller from January 1?
- Count January through June only: 31 + 28 + 31 + 30 + 31 + 30.
- Seller days = 181.
- July 1 belongs to the buyer and is not counted for the seller.
Answer. The seller is allocated 181 days.
Reasonableness check. July 1 is the 182nd day of a non-leap year, so the prior 181 days belong to the seller.
Common exam traps
- Using 30-day months in an actual-day problem
- Forgetting February has 29 days in a leap year
- Counting closing day for both buyer and seller
- Assuming the payment status from the calendar alone
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 1In a non-leap year, annual taxes of $3,650 are unpaid. Closing is March 15 and the seller owns closing day. Using actual days and a 365-day year, what is the seller's share?
- A. $730.00
- B. $740.00
- C. $750.00
- D. $760.42
Show answer and explanation →
Answer: B. $740.00
The seller has 31 + 28 + 15 = 74 days at $3,650 / 365 = $10 per day, or $740. $730 gives closing day to the buyer, which the stated convention does not. $750 uses a 29-day February, which applies only in a leap year.
Question 2In 2028, a leap year, annual association dues of $1,830 are prorated on a 366-day year. Closing is March 1 and the buyer owns closing day. What is the buyer's share for the rest of the year?
- A. $300.00
- B. $1,525.00
- C. $1,530.00
- D. $1,534.19
Show answer and explanation →
Answer: C. $1,530.00
The seller has January plus a 29-day February, 60 days, so the buyer has 306 days at $1,830 / 366 = $5, or $1,530. $1,534.19 divides by 365, ignoring the leap-year basis the question states. $300 is the seller's share, not the buyer's.
Question 3A tenant paid $1,800 for September on September 1. Closing is September 12, the buyer owns closing day, and rent is prorated by the 30 actual days in September. How much of the rent belongs to the buyer?
- A. $660
- B. $720
- C. $1,080
- D. $1,140
Show answer and explanation →
Answer: D. $1,140
The buyer owns September 12 through 30 inclusive, 19 days at $60 per day, or $1,140. $1,080 subtracts 12 from 30 and loses closing day, which belongs to the buyer. $660 is the seller's 11 days.
Ready to move on?
You have this calculation down when all of these are true.
- I can identify ordinary and leap-year day counts.
- I count actual month lengths correctly.
- I assign closing day exactly once.
- I calculate the amount before choosing debit-credit direction.
- I can audit my inclusive day count against the year's ordinal day.
Recommended next lesson
Continue with Debit and Credit Rules for Closing Math. Counting days gives you the dollar amount, and the next lesson decides which party is debited and which is credited, based on whether the item was paid in advance or is still owed.
Return to the complete calculation hub, formula sheet, or mixed math drill.