Real Estate Management and Valuation (Sep 2022)

Optimal Holding Period of an Investment Property Under Different Systems of Income Taxation – An Individual Investor’s Perspective

  • Kantšukov Mark,
  • Sander Priit

DOI
https://doi.org/10.2478/remav-2022-0018
Journal volume & issue
Vol. 30, no. 3
pp. 12 – 29

Abstract

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Taxes, particularly income tax, may affect how long investors decide to hold on to an investment property. There exists a research gap regarding the implications of a distributed profit-based taxation system for the holding period of an investment asset. As a distributed profit-based taxation system allows investors to postpone income tax liability, it creates an advantage for investors operating under such a system compared to investors operating under other systems of income taxation.

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