The 1981 Tax Act: Cost Recovery Choices for Real Property

Gailen L. Hite and Raymond J. Krasniewski

Real Estate Economics, 1982, vol. 10, issue 2, 200-208

Abstract: This paper examines changes in cost recovery (i.e., depreciation) patterns for realty resulting from the Economic Recovery Tax Act of 1981. While the Act provides for much shorter write‐offs than were previously available, it also imposes more severe recapture penalties for commercial property that has been depreciated according to the new Accelerated Cost Recovery System. An analysis of discounted cash flows is used to predict investor selection of the most advantageous cost recovery method. Although the accelerated system is generally preferable for residential realty, there are many situations where a taxpayer owning commercial property will elect the optional fifteen‐year straight‐line method.

Date: 1982
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/1540-6229.00263

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:reesec:v:10:y:1982:i:2:p:200-208

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1080-8620

Access Statistics for this article

Real Estate Economics is currently edited by Crocker Liu, N. Edward Coulson and Walter Torous

More articles in Real Estate Economics from American Real Estate and Urban Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().