How can taxes you pay on real estate benefit your income tax return?

ocman21: How can taxes you pay on real estate benefit your income tax return?
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?

Answers and Views:

Answer by PooPooLaTrash
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 https://taxes.about.com/od/deductionscredits/qt/propertytax2008.htm

To answer your other question, many states collect property taxes based on the assessed value of real estate.

Answer by Badger Boise
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.

Answer by Frank M
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.