If the buyer pays accrued property taxes on behalf of the seller, how does this impact the amount realized from the sale?

When a buyer pays accrued property taxes on behalf of the seller, this payment is typically considered a financial responsibility that the seller has. By covering this cost, the buyer effectively reduces the seller's net proceeds from the sale.

In the context of the transaction, the amount realized from the sale includes not just the cash or property received but also any liabilities assumed or expenses paid on behalf of the seller. Since the tax payment is an obligation of the seller, the buyer's assumption of this obligation means the seller receives less benefit from the sale.

Thus, the payment of the accrued property taxes decreases the amount realized by the seller, as it is akin to a deduction from the overall proceeds of the sale. This reduction is crucial in understanding how various elements of a sale can affect the overall financial outcome for the seller.