Your McCarthy Update 

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
December 14, 2020

McCarthy News
McCarthy & Company receives the Luca Pacioli Award from Thomson Reuters for its response to the COVID-19 pandemic. "We are proud to honor the exemplary efforts of those in tax, accounting, and legal operations. In what has been a challenging year, each applicant had an interesting and unique story to tell,” said Brian Peccarelli, chief operating officer of Customer Markets for Thomson Reuters. “The new challenges brought forth by the pandemic also prompted us to add a new category this year for tax and accounting firms responding to COVID-19. Congratulations to McCarthy & Company for being our COVID-19 Response award recipient." The Luca Pacioli Accounting Awards are named in honor of Luca Pacioli – known as the “father of accounting” – and his contributions to the profession. Thomson Reuters has a tradition of recognizing tax and accounting firms and individuals who embody Pacioli’s spirit of invention and innovation, and who demonstrate a mastery of accounting and technology. Read more.
 
Accounting & Tax News
(Accounting Today) IRS to issue warnings about Qualified Opportunity Funds. Certain taxpayers may need to take action to self-certify as a Qualified Opportunity Fund or face possible scrutiny from the Internal Revenue Service. Learn why.

(Accounting Today) New end-of-year tax planning issues. For tax professionals and taxpayers alike, the past year was characterized by various legislation addressing the coronavirus pandemic, as well as by reacting to the continuing implementation of the Tax Cuts and Jobs Act. Moreover, legislation passed at the end of last year affected expiring tax provisions, retirement provisions, and disaster relief. Learn more.
 
(Forbes) 3 retirement planning steps to take before 2020 ends. Despite new challenges brought on by COVID-19 in 2020, retirement planning remains a core part of financial security. All retirement planning is deeply personal. It is not just about saving money, reducing taxes, or having money that lasts a lifetime – it is about accomplishing goals and living with dignity throughout life. Read more.
 
(Journal of Accountancy) Several tax provisions set to expire at end of 2020. During a busy and historic year — with a global pandemic, disruptions to the economy, and postponements of normal tax deadlines — practitioners may have missed that many tax provisions are scheduled to expire at the end of the year. And while the annual expiration of tax provisions has become common, in most years Congress by December has at least considered legislation to extend some or all of them. This year is different, with no hint that Congress is prepared to take up extender legislation in the last few days of the year. Learn more.

(Entrepreneur) 3 Tips for smarter cash flow management. Ensuring more money is coming in than going out is sometimes easier said than done. Keep these strategies in mind to help keep your business in the black. Read more.

(Tax Foundation) Corporate tax rates are trending down. This week, the Tax Foundation released its new worldwide comparison of corporate tax rates in over 220 jurisdictions. Corporate tax rates have been declining in every region around the world over the past four decades as countries have recognized their negative impact on business investment. Explore the latest trends and compare rates by country. Read more.

(Tax Foundation) Ranking property taxes on the 2021 State Business Tax Climate Index. The 2021 State Business Tax Climate Index’s property tax component evaluates state and local taxes on real and personal property, net worth, and asset transfers. The property tax component accounts for 14.8%  of each state’s overall Index score. While PA ranked 15, NJ ranked 46. Learn why.

Construction News
(Construction Dive) 2021 Construction Economic Forecast as Recession Threat Remains, ‘V’-Shaped Recovery Is at Risk of Becoming a ‘W.’ Another recession may be on the horizon. Critically, one could occur even if a further stimulus is passed. If the first recession is any indication, the next one will be sharp and short, according to Anirban Basu, Chief Economist for the Associated Builders & Contractors (ABC). Recession or not, nonresidential construction is the weakest it has been in more than a decade. Commercial real estate has been hit particularly hard, with industry fundamentals in tatters as more companies choose to work remotely, more retailers go bankrupt and hotels remain under-occupied. Read more.
 
(Construction Dive) Contractors can require COVID-19 vaccinations for jobsite workers, lawyers say. There are several steps that firms can take to encourage their employees to get vaccinated. Learn more.
 
(Housing Wire) Fannie Mae reports housing market confidence drop. Following three months of increases, Fannie Mae’s Home Purchase Sentiment Index (HPSI), a composite index designed to track the housing market and consumer confidence to sell or buy a home, fell 1.7 points in November to 80. Year-over-year, the HPSI is down 11.5 points. Learn more.

(HUB International) Prepare for Bumps in the Road Ahead. To rebuild balance sheets and improve profitability, contractors must keep work environments safe and maintain balance between risk management vs. opportunity. Read more.
 
(NAHB Today) Lumber Prices on the Rise – Again. After drifting lower from mid-September to mid-November, lumber prices are on the rise again. Prices peaked at an all-time high of roughly $950 per thousand board feet in September before gradually moving down to around $550 per thousand board feet last month. Learn more.

COVID-19 News
(Accounting Web) A few year-end tax tips among COVID-19. Among COVID-19, year-end tax planning is a little different than it has been in quite some time. And, as we all know, this year with the CARES Act and everything else, things in the tax planning world are different. Read more.

(Financial Planning) Maximizing forgiveness for PPP loans. The decisions you make now can play a significant role in how much will be forgiven. Learn why.

(Harvard Business Review) Returning to work after lockdown: lessons from Wuhan. As COVID-19 lockdowns are lifted and workplaces reopen, how can businesses promote employee engagement, productivity, and safety? Learn how.

(NJBIZ) New Jerseyans to see 20 more weeks of jobless aid as 487K risk losing benefits. Thousands of New Jerseyans will get another 20 weeks of unemployment benefits under a bill signed by Governor Phil Murphy last week, according to a Thursday statement from the New Jersey Department of Labor and Workforce Development. Read more.

(NJBIZ) Over 7,500 businesses approved for $6.4M in PPE subsidies. Under the NJ Small and Micro Business PPE Access Program, companies can get discounts of nearly 70% for items such as masks, gloves, dividers and floor markings for social distancing, hand sanitizer, gowns, face shields and disinfectant. Read more.

(Reuters) Federal student loan payments suspended until end of January. U.S. Secretary of Education Betsy DeVos said the suspension of federal student loans payments and accruing interest set to end on December 31 will be extended another month as the pandemic presents financial challenges to borrowers. Read more.

(Tax Foundation) CARES Act Tax Provisions Due to Expire on December 31. Congress is having an unusually busy week as lawmakers seek to simultaneously fund the federal government beyond the expiration of the continuing resolution on Friday and provide a second round of economic relief to individuals and businesses after passing the $2.6 trillion CARES Act last March. Lining up closely with these priorities is the upcoming expiration of many individual and business CARES Act tax provisions. Read more.

(Tax Foundation) COVID-19 Tax Resource Center. As the U.S. federal, state, and local governments, as well as countries around the world, continue to implement measures to support their economies amid the coronavirus (COVID-19) threat, the Tax Foundation’s  experts are providing trusted analysis of the latest tax policy developments to better inform policymakers, journalists, and taxpayers. Read more.

We will continue to keep you updated. Please visit our COVID-19 Resource Page for more alerts.

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@MCC-CPAs.com. I can be reached at Marty.McCarthy@MCC-CPAs.comAs 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).