Friday, January 15, 2010

Two Builders Report: $512 Million Added to Bottom Line from Recent 5 Year Carry Back Tax Legislation.

Housing Wire HERE reports that LENNAR is reporting that they will save $320 Million from recent tax legislation that allows them to carry back losses for 5 years, effectively getting a rebate of taxes previously paid.

Business Week HERE says that KB Home is reporting that they will save $191.7 Million from the same carry back legislation.

As Lennar and KB Home ranked as 4th and 5th largest builders in 2008, seems likely that other public home builders will also rack up additional large savings courtesy this change in the tax code. Details won't be available for those additional companies until updated earnings reports are filed with the SEC.

To my knowledge there is no constraint on how home builders can spend this new revenue, and no requirement that they report jobs created or saved.

Originally created and posted in the Oregon Housing Blog.

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