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Business, 24.05.2021 15:00 rebtav

Sally owns real property for which the annual property taxes are $19,080. She sells the property to Kate on April 2, 2020, for $954,000. Kate pays the real property taxes for the entire year on October 1, 2020. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar.
a. How much of the property taxes can be deducted by Sally and how much by Kate?
b. What effect does the property tax apportionment have on Kate's adjusted basis in the property?
c. What effect does the apportionment have on Sally's amount realized from the sale?
d. How would the answers in parts (b) and (c) differ if the taxes were paid by Sally?

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Sally owns real property for which the annual property taxes are $19,080. She sells the property to...

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