07. Proration of Real Estate Taxes
Description
For Real Estate closings. Prorates real estate taxes based upon the number of days in the current year that have elapsed as of the closing date.
Code
SET DayOfYear-n TO DAYS FROM(
DATE OF( 31, 12, YEAR OF( Closing-d ) -1),
Closing-d
)
SET DaysInYear-n TO DAYS FROM(
DATE OF( 31, 12, YEAR OF( Closing-d ) -1 ),
DATE OF( 31, 12, YEAR OF( Closing-d ))
)
( DayOfYear-n / DaysInYear-n ) * YearlyTaxes-n
Explanation
This computation requires two temporary number variables: DayOfYear-n, and DaysInYear-n (set the Advanced options to "Ask only in dialog," "Don't warn if unanswered," and "Don't save in answer file"). The first section computes what day of the year the date Closing-d falls on (i.e. the number of days that have elapsed since Dec. 31 of the previous year). The second portion computes how many days there will be in the current year (in case of leap year). The third section determines how much of the year has passed and multiplies this fraction by a yearly tax base amount (usually taken from the most recent available tax bill). The number that is returned by the computation is the prorated tax amount.