Define imputed rental income. Is imputed rental income taxed? ...

[jparksx]

Define imputed rental income. Is imputed rental income taxed? Based on your answer, discuss the tax code treatment of homeowners and renters on equity grounds.
 
  What will be an ideal response?

Question 2

Explain the difference between fixed costs in the short run and fixed costs in the long run.
 
  What will be an ideal response?

[courtney_bruh]

Answer to Question 1

Imputed rental income is what an owner-occupied home could be rented for if not owner-occupied. Imputed rental income is not taxed under the current tax code. On equity grounds, the non-taxation of imputed rental income is wrong because it does not treat the owners of rental housing and the owners of owner-occupied houses equally, since those who rent houses have to pay taxes on their rental income.

Answer to Question 2

In the short run fixed costs are sunk; in the long run, fixed costs are avoidable.

[jparksx]

Thanks for the timely response, appreciate it

[Liamb2179]

Wow, this really help