EconPapers    
Economics at your fingertips  
 

Taxes and the User Cost of Capital for Owner-Occupied Housing

Patric Hendershott and Joel Slemrod

No 929, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Owner-occupied housing is said to be favored in the tax code because mortgage interest and property taxes can be deducted in the computation of one's income tax base in spite of the fact that the returns from owner- occupied housing = not taxed. The special tax treatment reduces the user cost of capital for owner-occupied homing. The issue treated in this paper is the measurement of the tax rate to be employed in the user cost calculations. It is argued that different tax rates am appropriate for the tenure choice and quantity-demanded decisions, and that these values depend on the detailed tax position of the household and the method of finance. Average 1977 tax rates for households in different income ranges are calculated using the NBER TAXSIM microeconomic data file on individual tax returns

Date: 1982-07
Note: PE
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Published as Hendershott, Patric H. and Joel Slemrod. "Taxes and the User Cost of Capital for Owner-Occupied Housing." Real Estate Economics, American Real Estate and Urban Economics Association, Vol. 10, No. 4 (December 1982) , pp. 375-393.

Downloads: (external link)
http://www.nber.org/papers/w0929.pdf (application/pdf)

Related works:
Journal Article: Taxes and the User Cost of Capital for Owner‐Occupied Housing (1982) Downloads
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:nbr:nberwo:0929

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w0929

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-31
Handle: RePEc:nbr:nberwo:0929