prorate

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Pro Rata

Describing a distribution according to some proportion. For example, a salary may be stated as $120,000 per year pro rata. This means that if an employee only works for six months, his/her salary will be $60,000. Likewise, dividends are distributed pro rata, meaning that shareholders receive them according to the proportion of shares that they own.

prorate

The process of determining the pro rata portions. In real estate, the term comes up frequently at a closing,when allocating certain property expenses.Usually real estate taxes are paid in arrears and homeowners association dues are paid in advance.The new owner will pay 100 percent of the real estate tax bill when it is presented after the closing, but a portion of that bill represents time periods when the seller owned the property.Likewise,the seller will have already paid the association dues for the month, but will own the property for only a portion of the month. At closing, these expenses are prorated between the buyer and seller. The buyer will receive a credit for the accrued-but-unpaid property taxes. The seller will receive a credit for the paid-but-unaccrued association dues.

References in periodicals archive ?
Thus, the SC said DOF and the BIR went beyond the enforcement of the law in issuing the subject revenue regulations mandating the prorated application of the new amounts of personal and additional exemptions for 2008.
453125 apiece dividend, prorated to reflect the number of days in the fourth fiscal quarter through the completion of the deal in each case.
The board of directors of oil and natural gas company Jones Energy (NYSE:JONE) on Tuesday declared a prorated quarterly dividend of approximately USD0.
However, a returning expatriate may be able to qualify for a prorated exclusion available to individuals unable to meet the ownership/use tests due to a change of place of employment, health or unforeseen circumstances.
Under the terms of the Agreement and Plan of Merger by and among Western Refining, the company and various of their respective affiliates, the prorated distribution is expected to be paid on the closing date of the merger to common unitholders of record immediately prior to the closing date on or about 24 June 2016.
It is important to note that the TRA '97 does not provide that income can be prorated, but rather indicates that the tax year must be closed with respect to the deceased partner.
These mortgages offer attractive interest rates (usually prime plus one percentage point, or 7 percent today) and because they are secured by debt on real estate, shareholders can deduct their prorated portion of the interest expense on their Federal tax returns.
For example, if a cell phone has been connected in the middle of a billing cycle, the amount displays as prorated and ensures that the company is not billed for an entire month of service.
M2 EQUITYBITES-April 21, 2016-Targa Resources' board announces quarterly dividend on common shares and prorated dividend on TRC Series A preferred shares
His prorated salary, plus the added luxury tax hit, would cost Buss about $1 million.
NYSE: COE) announced today that its Board of Directors has declared a prorated dividend on Columbia's common stock, subject to obtaining stockholder approval of the previously announced merger of Columbia with and into a wholly-owned subsidiary of the Commingled Pension Trust Fund (Special Situation Property) of JPMorgan Chase Bank, N.
Since agreement expires June 30, 2000, Miller will be paid for approximately eight months of work, with both the salary and fund prorated over that time.