Income tax concessions for owner‐occupied housing |
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| Authors: | Steven C Bourassa William G Grigsby |
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| Institution: | 1. Professor and Chair of the Department of Urban and Public Affairs , University of Louisville;2. Professor Emeritus of City and Regional Planning , University of Pennsylvania |
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| Abstract: | Abstract This article considers arguments for and against the major tax concessions for owner‐occupied housing in the Internal Revenue Code—concessions that have a significant effect on the federal budget. It recommends retaining two of the concessions— nontaxation of net imputed income and exemption of capital gains—and abolishing two others—the mortgage interest and real estate tax deductions. After a review of the market impact of removing each deduction, the article concludes that an appropriate phase‐out period of 15 to 20 years would virtually eliminate adverse effects on house prices and homeowners. |
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| Keywords: | Homeownership Tax policy |
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