As soon as the new tax legislation passes in Congress, this book is available to explain just what the laws mean to the 200 million American taxpayers affected by them. In simple, easy-to-understand language, this book provides a detailed overview of how the average taxpayer will be affected by the new laws, valuable insight readers can use to make the most of their tax status--including how to rethink saving and spending options, and thorough coverage of the language and meaning of the new tax laws, giving taxpayers the ability to begin planning as soon as the laws are passed.

Capital investment tax provisions have been changed numerous times in the last decade, with depreciation tax lives shortened in 1981 and lengthened ever since and capital gains taxation reduced in 1978 and 1981 and now increased. The first part of this paper analyzes these changes and attributes a large part of them, including the 1986 Tax Act, to changes in inflation: tax depreciation schedules and capital gains taxation that look reasonable when the tax depreciation base is being eroded at ten percent a year and an overwhelming share of capital gains is pure inflation take on a different appearance when inflation is only four percent. The remainder of the paper critiques the typical project model used to compute impacts of tax changes on real estate and report simulation results using a modified model.

Guide offering a clear and concise review of the most significant aspects of recent tax legislation and its impact on real estate investment.