 Understanding the Real Estate Provisions of Tax Reform: Motivation and ImpactJames R. Follain, Patric Hendershott and David Ling () No 2289, NBER Working Papers from National Bureau of Economic Research, Inc Abstract: Capital investment tax provisions have been changed numerous times in the last decade, with depreciation tax lives shortened in 1981 and lengthened ever since and capital gains taxation reduced in 1978 and 1981 and now increased. The first part of this paper analyzes these changes and attributes a large part of them, including the 1986 Tax Act, to changes in inflation: tax depreciation schedules and capital gains taxation that look reasonable when the tax depreciation base is being eroded at ten percent a year and an overwhelming share of capital gains is pure inflation take on a different appearance when inflation is only four percent. The remainder of the paper critiques the typical project model used to compute impacts of tax changes on real estate and report simulation results using a modified model. Date: 1987-06 Published as Follain, James R., Patric H. Hendershott and David C. Ling. "Understandingthe Real Estate Provisions of the Tax Act: Their Motivation and impact," National Tax Journal, Sept. 1987 pp. 363-372, Vol 40, No. 3. Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:2289 Ordering information: This working paper can be ordered from 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. |
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