Tham khảo tài liệu 're academic press private real estate investment_6', tài chính - ngân hàng, đầu tư bất động sản phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | The Tax Deferred Exchange 159 Most of academic finance and economics assumes away the complication of income taxes. This can frustrate the reader who knows that taxes are a reality and usually affect one s decisions. In defense of academics it should be noted that working with . income tax rates is frustrating. The code is a moving target. Working with graduated tax rates requires use of a step function a rather inconvenient mathematical device. As this chapter deals directly with taxes we may not assume them away lest the entire subject disappear. However some assumptions are necessary in the interest of simplicity. One of these is a flat tax rate. The alert reader knows that . income tax rates change with income levels but our conclusions here will not change by relaxing the flat tax assumption. There are lessons for readers outside the United States. First Section 1031 has been in the . tax code since its inception. Congress intended citizens have the right to defer tax on gains when transferring from one location to another while remaining in the same business. This fosters important incentives that contribute to the development of society. Second taxation policy affects behavior. The . tax code in its present form is not a work of art. Even the administration of Section 1031 transfers has become needlessly complicated under the guise of simplification. Policymakers in other countries may wish to proceed with caution before following the . model. Recent amendments to Section 1031 have had unintended consequences that influence the market. A primary justification for ignoring income taxes in other writings is that all economic agents operate in a common income tax environment. The marginal difference in tax brackets spanning different ranges of income certainly affects the accuracy of any particular calculation but these may be viewed as de minimus. The central message of this chapter is that some capital gain taxes may be delayed and some may .
