PRORATED VALUES IN FINANCE AND TAXES
Prorating transactions is a constant necessity in real estate. This need recurs in so many different aspects of the investing process that every real estate investor needs to acquire two skills: the ability to make prorations accurately and a rationale for making prorations that can be documented and supported.
This chapter provides detailed explanations of the various forms of proration and explores methods for making a proration decision. Some of the decisions you make regarding proration may have ramifications for years to come. For example, the method you use to divide a property’s ...