when you own property, do you also have to pay federal taxes?

Question

i own property and i pay state taxes, in my tax returns, i have not said that i own property. I do pay the state tax though.

I need to know if I am obligated to pay taxes to the federal govt as well.

Answer 1

Unless you are renting the property (or otherwise generating income from it) you do not have to report it on your federal income tax return.

I'm guessing that the state taxes you pay are local property taxes. The local property taxes that you pay can be reported on your 1040 Schedule A as part of your itemized deductions. But the house itself is not taxed (unless you sell it at a profit or make some income off of rental).

Answer 2

Whether or not you pay federal taxes depends on your income, not what property you own. Property taxes are usually local or county, not state or federal.

If you owe state taxes, chances are you should be filing a federal return also - not for sure, but fairly likely. You wouldn't show property that you own on your tax return unless you are getting income from it, like renting it, or unless you sell it.

Answer 3

if you are earning income from that property then you need to declare that income and pay federal taxes on it. What state taxes are you paying on the property?