calculating federal income tax liability, as an example, provide incentives for real estate investment. Conversely, policies limiting mortgage interest deductions for some type of real property, and policies substantially increas ing the time over which real property investments must be depreciated (both of which were included as provisions in the 4Tax Reform Act (TRA) of 1986) create disincentives for real estate construction and investment.
Monetary and fiscal policies, thus, can and do exert sig nificant impact on real estate construction and sales. In many instances, the effects of such policies on real estate con truction and sales are either not as intended by the policy makers, or are the somewhat incidental side effects of policies designed with some end in mind other than real estate construc tion and sales. Actual effects on real estate construction and sales are analyzed in the following section.
MONETARY AND FISCAL POLICY IMAPCTS ONREAL ESTATE CONSTRUCTIO
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