Real estate taxes for the current year are not known until November of that year. The first half is not due until generally December 20 and the second half is not due until June 20 of the following year. When a real estate transaction is "closed," the seller pays for taxes that are due up to the time of closing and the buyer pays for taxes due thereafter, if the taxes are to be prorated. For example, if the taxes on property are $2,400.00 per year and the transaction is closed on June 30, each party would pay $1,200.00 in taxes. Either the seller can take a reduction of $1,200.00 in the sales price, or the seller will need to pay the buyer for one-half of the taxes. Since taxes are not known for that year until November, the tax proration is usually based on taxes for the previous year.