Buildings, farmhouses, ranches, and fixtures attached constructively to the buildings come under real estate properties. They come under real estate taxation.
Calculation of Taxes
These taxes are proportional to value of the property. The higher the value of the property, the higher will be the taxes. The owners are required to pay taxes unless the laws owing to disabilities or age exempt them. Residential or agricultural owners pay their taxes directly. Those on a rented property pay taxes indirectly in the form of rents.
Laws of Taxing
You can avoid paying tax if you sell your property for less than $250,000, or less than $500,000 in case of joint sale. If your profit is more than specified amount, only the amount exceeding the above is taxable. To qualify for this, you need to reside in the land for 2 to 5 years at least.
To cut down taxes, re-invest in real estate.