10 A is a cash method taxpayer. A owns real estate and paid a real estate tax bill of $7,200 covering the period from January 1, 2022 to December 31, 2022. A later sells the property on April 1, 2022. How should the real estate taxes be treated for tax purposes? (If necessary, use a 360-day year and 30 day month to calculate your answer). 

a. None of the above 

b. $3,600 is apportioned to the seller and $3,600 is apportioned to the buyer

c. The prepaid real estate taxes are apportioned and added to the purchaser's basis and the seller's amount realized on the sale. 

d. $1,800 is apportioned to the seller and $5,400 to the buyer

e. $7,200 is apportioned to the seller who paid the bill

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is b 3600 is apporti... View the full answer