How do we stimulate the US Real Estate Market?
Posted 08-28-2009 at 09:39 PM by TaxGuru
Here are 3 changes in the tax code that the Obama Administration should consider to stimulate the Real Estate market.
1. Abolish the Passive Activity Loss Limitation rules, and instead allow Investors to write off all their real estate rental losses without restrictions.
2. Allow a 5 year depreciation rule on Residential rental property.
3. Allow a 15 year depreciation rule on Commercial rental property.
The cumulative impact of these would be to galvanize the real estate market by getting private investors to obtain a greater return on their investment. Hence increasing the effective yield. Of course, the US treasury would suffer a loss in temporary tax revenue, but it would be offset against a revived US economy yielding higher tax revenue in the future..!
1. Abolish the Passive Activity Loss Limitation rules, and instead allow Investors to write off all their real estate rental losses without restrictions.
2. Allow a 5 year depreciation rule on Residential rental property.
3. Allow a 15 year depreciation rule on Commercial rental property.
The cumulative impact of these would be to galvanize the real estate market by getting private investors to obtain a greater return on their investment. Hence increasing the effective yield. Of course, the US treasury would suffer a loss in temporary tax revenue, but it would be offset against a revived US economy yielding higher tax revenue in the future..!
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