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When calculating the amount Bill will receive back due to prepaid taxes upon closing on July 15th, it's essential to understand how property taxes are typically assessed and how they are prorated at the time of closing.

Property taxes are usually billed annually. If Bill's total property tax bill for the year is $980, that means he is responsible for paying this entire amount for the year. This breaks down to a monthly tax amount of $81.67 ($980 divided by 12 months).

Since Bill is closing the sale on July 15th, he will need to pay for the first half of the year up until that date. The first half of the year consists of January through June, totaling six months. Therefore, he will owe taxes for these six months, which amounts to $490 ($81.67 multiplied by 6 months).

Since the closing occurs on July 15th, the seller is responsible for the taxes incurred on that day, and therefore, only up to half of the July tax is due, which is $40.83. This means that, technically, Bill has prepaid taxes covering the first half of the year and the seller is covering the remainder of the July tax.

When Bill closes, he will already have prepaid