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The 1986 tax reform act potential effects on domestic and foreign investors

The 1986 tax reform act potential effects on domestic and foreign investors Examines the way in which the 1986 Tax Reform Act affected thestatus of US real estate as a tax shelter. Demonstrates that because taxbenefits previously were an important component of total returns fromincome producing real estate, its immediate effect is to reduceaftertax returns from real estate. Argues that if market values falland rents rise, however, aftertax returns from income producing realestate should be sufficient to attract individual US investors. Addsthat the 1986 Tax Act should attract more US pension funds and foreigninvestors to US investment real estate given that the buying advantageof US investors has been reduced. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Valuation Emerald Publishing

The 1986 tax reform act potential effects on domestic and foreign investors

Etter, Wayne E.
Journal of Valuation , Volume 7 (1): 15 – Jan 1, 1989
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References (1)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0263-7480
DOI
10.1108/EUM0000000003255
Publisher site
See Article on Publisher Site

Abstract

Examines the way in which the 1986 Tax Reform Act affected thestatus of US real estate as a tax shelter. Demonstrates that because taxbenefits previously were an important component of total returns fromincome producing real estate, its immediate effect is to reduceaftertax returns from real estate. Argues that if market values falland rents rise, however, aftertax returns from income producing realestate should be sufficient to attract individual US investors. Addsthat the 1986 Tax Act should attract more US pension funds and foreigninvestors to US investment real estate given that the buying advantageof US investors has been reduced.

Journal

Journal of Valuation – Emerald Publishing

Published: Jan 1, 1989

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