WSJ: How Lennar Survived


By selling land at huge discounts to what it was once valued, big builders generated large losses for tax purposes.  By applying those losses against profits during prior years, they have collected about $2.55 billion in tax refunds this year, according to Zelman & Associates, a housing-research firm.

“Land Deals Help Builders Stay Alive” (subscription required), The Wall Street Journal, June 22, A1

Excellent front page WSJ article on how giant homebuilder Lennar (LEN) survived the bust by selling land, getting tax refunds on the losses and off balance sheet joint ventures.


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