The deductions of senior disabled or surviving spouse are _____________ upon sale.

• A. Deferred
• B. Prorated
• C. Nonrefundable
• D. Cancelled

Answer: (B)

The main idea is that exemptions for senior, disabled, or surviving spouse on property taxes are tied to the period of ownership within the tax year. When a property is sold, the deduction isn’t fully claimed by one person for the whole year; it’s divided between the seller and the buyer in proportion to how long each owned the home. For example, if the annual exemption is based on 12 months and the seller owned for eight months while the buyer will own it for four months, the seller receives eight-twelfths of the exemption and the buyer receives four-twelfths. This prorating is typically reflected in the closing where each party’s share is accounted for, ensuring the deduction goes to the person who actually owned the property during their respective period. So, the deductions are prorated upon sale.