Welfare for Home Builders
Do your duty, taxpayers, and help those patriotic home builders through their difficult time.
Now, those benefits could prove a boon to other hard-hit home builders if the Senate has its way with the economic-stimulus package moving through Congress. In its version of the legislation, which the chamber is due to vote on in coming days, companies would be allowed to apply losses against taxes paid in the previous five years, as opposed to the current two-year period.
That would allow home builders to offload land for a loss and then apply to the Internal Revenue Service for refunds based on what they paid in taxes possibly going as far back as 2002, or in some cases 2001. The longer look-back period could take some pressure off the builders and housing markets.