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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (57832)	7/16/2006 6:31:44 PM
From: Elroy Jetson	Respond to of 306849

Home builders do not have annual appraisals of their land inventory. It is carried at Book Value, the price they paid for it. Another important difference is that home builders pay ordinary income tax on property price appreciation when it is sold. Lower capital gains taxes do not apply. Pension funds have annual ERISA reviews where their land is valued. REITs also have similar annual valuations. Like other manufacturing businesses home builders do not value their property holdings annually. .