Your McCarthy Update
Marty McCarthy, CPA, CCIFP
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Focused on You. Dedicated to Your Success.
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March 29, 2021
Accounting & Tax News
(Forbes) You have moved. Be sure you can prove it to the tax authorities. A previous trend continues of people moving from high-tax states to lower-taxed states, and the pandemic seems to have further accelerated the trend. Learn more.
Construction & Real Estate News
(CNBC) New home sales take a hit as builders grapple with big delays and bigger costs. Sales of newly built homes fell more than expected in February, as builders faced higher costs and persistent delays. Read more.
(Construction Executive) In 2021, industry needs to hire an additional 430,000 craft professionals. According to an analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC), contractors will have to increase hiring in 2021 over 2020 levels. The analysis also revealed that every $1 billion in extra construction spending generates an average of at least 5,700 construction jobs. Read more.
(Fortune) Lumber prices are up a staggering 188%—when will the wood shortage end? As of the week of March 11, the price of lumber per thousand board feet is at $1,044, according to Random Lengths. That is an all-time high, and up 188% since the onset of the pandemic. The National Association of Home Builders (NAHB) calculates that current lumber prices are adding at least $24,000 to the price tag of a typical new single-family home. Read more.
(Housing Wire) Existing home sales dip 6.6% amid supply struggles. Sales are still 9% higher than a year ago, but demand has left just two months inventory to the market. Read more.
COVID-19 Related News
(Accounting Today) IRS expands unemployment tax exclusion to more taxpayers. The IRS updated the instructions on how to figure the amount of modified adjusted gross income to use for deciding how much of a taxpayer’s unemployment benefits from 2020 qualify for the $10,200 exclusion on taxes. Prior to this, the IRS instructed taxpayers to include the unemployment income in modified AGI, but now they can exclude unemployment benefits from modified AGI. Learn more.
(AICPA) State tax due dates updated for COVID-19 relief. Thirty-five states have extended 2020 tax filing and payment deadlines to May 17, 2021 including Pennsylvania, New Jersey, and New York. Learn more.
(CNBC) $10,200 unemployment tax break: IRS plans to automatically process refunds. “Do not file an amended return at this time,” IRS Commissioner Charles Rettig said. Learn how.
(CNBC) The Small Business Administration is set to triple loan amounts for businesses hurt by COVID. Beginning April 6, small businesses and non-profits can apply for up to 24 months of relief, with a maximum loan amount of $500,000, the SBA announced. Read more.
(CNBC) COVID-related fraud has cost Americans $382 million. As of March 23, more than 217,000 people had filed a coronavirus-related fraud report with the agency since January 2020, according to federal data. The median loss was $330. However, losses skewed higher for seniors — $500 for people in their 70s and $900 for those in their 80s. Learn more.
(Construction Dive) Architectural billings increase for first time since pandemic began. The Architecture Billings Index, seen as an indicator of future construction spending, reached its first positive mark since February 2020, according to a new report from the American Institute of Architects (AIA). The ABI score for February 2021 reached 53.3, compared to 44.9 in January. A score above 50 indicates an increase in billings. Learn more.
(Construction Dive) Senate passes bill extending PPP deadline to May 31. The Senate passed, by a 92-7 vote, a bill on March 25 that would extend the deadline for Paycheck Protection Program (PPP) applications for another two months to May 31. The PPP Extension Act, which also gives the SBA until June 30 to close pending PPP applications, now awaits President Joe Biden's signature. Read more.
(GBCA) Philadelphia city council passes mandatory emergency paid sick leave legislation. On Thursday, March 19, 2021, Philadelphia City Council unanimously passed an Emergency Paid Sick Leave Bill. As of Friday March 26, the bill still awaiting the Mayor’s signature. After the Mayor signs the bill the City will release regulations outlining how the law will be applied. Read more.
(Philadelphia Business Journal) Philadelphia extends filing deadline for BIRT, other business taxes to May 17. The City of Philadelphia will extend filing deadlines for several business taxes to May 17, matching the recently changed federal filing period. The Business Income and Receipts Tax (BIRT); net profits tax; earnings tax and school income tax will all have their deadlines extended. Despite the change, the city still requires residents and businesses to pay property taxes by March 31. Read more.
(Philadelphia Business Journal) SBA flagged 190,000 PPP loans with 'hold' codes — and is deploying new tech to address them. These so-called hold codes can stem from anything from typos in Social Security or taxpayer identification numbers to more serious issues, according to agency officials. And they can be placed upon both loans that have yet to be paid out and those that are in the forgiveness process. Read more.
(Philadelphia Business Journal) SBA reveals first-ever timeline for $28.6B grant program for restaurants hit hard by the pandemic. The SBA is planning to roll out the much-anticipated $28.6 billion Restaurant Revitalization Fund grant program within 30 days, an agency official said. Learn more.
(Philadelphia Business Journal) SBA officially rolls out shuttered venue grant program. Small businesses eager to apply for the SBA's grant program for shuttered arts and culture venues — one that allows for a grant of up to $10 million — will be able to apply starting April 8, per new guidance announced Friday. Learn more.
(IRS.gov) Face masks and other personal protective equipment to prevent the spread of COVID-19 are tax deductible. The IRS issued Announcement 2021-7 clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. Learn more.
(State of New Jersey) PPE Access Program Deadline Extended to May 28. There is still time for New Jersey-based businesses and organizations with 100 or fewer employees to apply for discounts of nearly 70% off purchases of personal protective equipment through the NJ Small and Micro Business PPE Access Program. Businesses that were approved previously do not need to reapply, but any discounts they have redeemed to date will be counted toward the program cap. Read more.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@McCarthy.CPA. I can be reached at Marty.McCarthy@McCarthy.CPA As always, we are happy to help.
Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
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