How can taxes you pay on real estate benefit your income tax return?
ocman21 asked:
I’m doing a project for my business class, and I need lots of informations on this question.
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I’m doing a project for my business class, and I need lots of informations on this question.
Also I have another question:
What type of taxes do you have to pay on real estate?
May 5th, 2010 at 2:09 am
The standard deduction is upped by $1000 for joint filers (500 for single) who paid up to $2500 in real estate or property taxes. If you paid over that amount, you can still claim it as a line item itemized deduction. Topic 503 - Deductible Taxes, IRS website and
To answer your other question, many states collect property taxes based on the assessed value of real estate. PooPooLaTrash
May 6th, 2010 at 11:47 pm
Real estate taxes can be included as a deduction. Permitted deductions in all categories must be greater than your permitted standard deduction before they reduce your tax liability. For example, a single person under age is allowed a standard deduction of $5450. If that person owns a home that is mortgaged and has medical expenses, interest, real estate taxes, state taxes etc, and his total deductions are $7500, that reduces his taxable income by $2050.
Exception for people over 65 - seniors paying real estate taxes get a $500 addition to their standard deduction if they are unable to itemize deductions. Badger Boise
May 7th, 2010 at 3:40 pm
The taxes you pay on real estate can benefit you on your income tax return if you itemize your deductions on Schedule A of Form 1040. You may claim the property taxes you pay and the mortgage interest. Frank M