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 language | English |
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Pages (from-to) | 646-658 |
Number of pages | 13 |
Journal | Economic Inquiry |
Volume | 52 |
Issue number | 2 |
DOIs | |
State | Published - Apr 2014 |
ASJC Scopus subject areas
- General Business, Management and Accounting
- Economics and Econometrics