What financial adjustment is made to the seller at closing?

At closing, the financial adjustments made to the seller regarding property taxes typically involve a debit for the amount of property taxes that have accrued up until the closing date. This is because the seller is responsible for property taxes incurred during their ownership up to the point the property is sold. Thus, the seller is debited for the full amount of taxes owed for the current tax period.

While buyers usually credit the seller for the portion of taxes that will be paid after closing, the seller's total tax liability until the closing date is debited from their proceeds. This process ensures that all financial obligations for property taxes are settled appropriately before the transaction is finalized.

Other options indicate actions that do not align with the actual practices at closing. For instance, stating that the seller would be credited for the entire amount is misleading, as the seller would only receive credit for the amount they are owed after closing, not before.