Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement? Unset starred question The taxes are an accrued expense, and will appear as a buyer credit and a seller debit. The taxes are an accrued expense, and will appear as a buyer debit and a seller credit. The taxes are a prepaid expense, and will appear as a buyer credit and a seller debit. The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.