Abstract
This article examines how the anti-tax shelter Limitation on Loss Offset (LOL) rules affect the urban development process. It derives the LOL impacts on the pace and pattern of income-producing urban development and relates the results to the general characteristics of anticipated income time paths. It also shows that the LOL provision reduces the value of vacant land and how relative value declines systematically vary across locations in the urban area.
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Turnbull, G.K. The impact of loss offset limitations on project selection and development timing. J Real Estate Finan Econ 3, 141–154 (1990). https://doi.org/10.1007/BF00216588
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DOI: https://doi.org/10.1007/BF00216588