The Favorable Treatment of Owner-Occupied Housing in the Federal Individual Income Tax
Date of Award
2010
Document Type
Thesis
Degree Name
Bachelors
Department
Social Sciences
First Advisor
Coe, Richard
Keywords
Income Tax, Housing, Tax Policy
Area of Concentration
Economics
Abstract
The Federal Individual Income Tax provides significant incentives to those who choose to own their home. This thesis attempts to analyze the current treatment of homeowners. First, it examines the four major provisions that provide benefits to those who own; the deduction of mortgage interest, the deduction of property taxes, exclusion of imputed rental income and exemption of most capital gain. This examination includes how they work, but concentrates on the equity between different groups. Second, this thesis addresses the commonly cited justifications for the favorable treatment of homeowners. Finally, it looks at the incentives as a whole, analyzing their structure and propose changes for the future. The final conclusion is that our treatment towards homeowners is unfair, inefficient and should be eliminated, despite its overwhelming popularity.
Recommended Citation
Price, David, "The Favorable Treatment of Owner-Occupied Housing in the Federal Individual Income Tax" (2010). Theses & ETDs. 4317.
https://digitalcommons.ncf.edu/theses_etds/4317
Rights
This bibliographic record is available under the Creative Commons CC0 public domain dedication. The New College of Florida, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.