Interesting Fact on Tax Treatment of Housing December 5, 2007 Gerald Prante Gerald Prante As the mortgage “crisis” continues to garner attention from policymakers seeking to do something to help out homeowners including possible use of the tax code, here’s an interesting fact to remember for those complaining about federal policies towards housing courtesy of CBO: Effective Tax Rate on Capital Income = 13.8 percent Effective Tax Rate on Capital Income Derived from Owner-Occupied Housing = – 5.1 percent Yes, that’s a negative effective tax rate. For a good commentary on a recent proposal from the Treasury Department to have the tax code enter the bailout discussion, read this from Howard Gleckman of the Urban Institute. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Federal Tax Policy Individual Income and Payroll Taxes
