WSJ: Homebuilders could benefit from Obama tax cuts

An article in today’s Wall Street Journal (“Write-Offs a Boon to Builders, Bankers” in the online version; “Write-Offs Would Help Companies Hit Hardest” in print, page A3) explains how President Obama’s planned tax cuts might be good for our friends over on the home-building front.

Typically, companies can carry back such losses only two years. The Obama proposals likely would mean that companies with enormous losses from last year and this year could use the losses to help wipe out tax obligations from the previous five years and receive sizable tax-refund checks from the Treasury Department. For some firms, that would mean cash payments of billions of dollars.

That tax cut would be particularly helpful to industries that were flying high for the past several years, but now aren’t expected to report much profit for the foreseeable future — such as Wall Street firms, home builders and construction companies.

Much more detail in the full piece, of course, for those interested in the nuances of accelerated depreciation.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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3 Responses to WSJ: Homebuilders could benefit from Obama tax cuts

  1. This is exactly why I voted against Obama. The give to the poor for doing nothing good mentality is ridiculous. In Charleston, SC companies such as Beezer, Centrex, Portrait, etc…have ruined many parts of the city with cheap homes and clear cutting trees. I vote for no help for the GREEDY companies that have partially gotten us into this mess in the first place. These types of companies have produced the surplus we have now. Why would we help them to get back to creating more surplus?????

  2. >The give to the poor for doing nothing good
    >mentality is ridiculous.

    I agree. Tax cuts for the wealthy make much more sense. The most you get from helping poor folks — you know, with things like affording medical care — are healthier, better-educated taxpayers earning more money.

  3. Small Home Builder says:

    This really makes me angry. Putting all builders in one basket.
    We are not all greedy and we do not build cheap homes. We barely made ends meet. We are not the high priced builder but the builder who turns out maybe 2 to 3 homes a year for first time home buyers or low income. We keeps our prices down so you can afford to buy a home. What about the builder that lost his business in this market. He can’t get a job. Who is going to hire a builder? He can’t collect social security being self employed. He has no other income and can’t pay his bills. Like his $4000. a month medical insurance.
    He had to sell his home for less than what it’s worth because he couldn’t pay for it without working. Some home builders are not wealthy as some people may think. We make a pay like everyone else. We pay bills like everyone else yet there is nothing to help us. We are in the same boat as many.
    We need to be able to get loans to start up again so we can start building again but we can’t because now our credit is tarnished. Walk in someones shoes before you speak badly about them.

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