A big part of every real estate transaction involves taxes: You pay transfer taxes when you buy, property taxes when you own and more transfer taxes when you sell. There are also taxes on income earned from investment real estate and even capital gains taxes, though infrequently for the sale of residential property.

The good news is that while real estate is taxed, there are also big real estate write offs — mortgage interest is usually deductible, property taxes are deducible, depreciation is deductible for investors, when property have been owned for at least a year long-term and lower capital gains rates apply and if you you’ve sold a property that you used for two of the past five years you may be able to deduct up to $500,000 in profits if married and up to $250,000 if single.

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