The taxpayer relief act of 1997 and homeownership: Is smaller now better?

Amelia M. Biehl, William H. Hoyt

Research output: Contribution to journalArticlepeer-review

Abstract

Prior to the Taxpayer Relief Act of 1997 (TRA97), the capital gain from the sale of a home was taxed differently for those over and under the age of 55. TRA97 eliminated this differential treatment. Using a difference-in-difference approach, we find that home sellers slightly under the age of 55 were 6.2% more likely to move for a less expensive house to maintain, 6.6% less likely to move for a larger place, and 5.2% more likely to reside in a condominium after TRA97's enactment, relative to those slightly over 55.

Original languageEnglish
Pages (from-to)646-658
Number of pages13
JournalEconomic Inquiry
Volume52
Issue number2
DOIs
StatePublished - Apr 2014

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics and Econometrics

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