Daily Real Estate News | November 11, 2009 |
A lesser-known part of the law that extended the home buyer tax credit gives builders a big tax break.
It offers companies tax refunds to make up for past losses, allowing them to claim cash refunds against taxes they paid going back five years, to offset current losses.
Pulte Homes Inc. estimates that it will receive a tax refund of about $450 million. Credit Suisse says Lennar Corp. will get between $200 million and $300 million. Meritage Homes expects $60 million.
Smaller private builders will get smaller amounts, but they lost less.
"They can take a breath," said Bill Killmer, vice president of advocacy at the National Association of Home Builders. "Many of these guys would have to shutter and close their doors. They'll be able to survive."
Source: The Wall Street Journal, Dawn Wotapka (11/07/2009)