Residential Real Estate:
One advantage to owning real property is being able to deduct the interest of a home mortgage and home equity loan. Real estate taxes can also be deducted on your federal return.
Property owners must pay local property tax, which is usually collected by the County Tax Assessors. The amount of taxes to be paid depends on the assessed value of the property and improvements on the property. You can appeal the assessed value by using actual sales of similar property in your area.