March 8, 2021
McCarthy Thought Leadership
Construction & Real Estate News
(CNBC) Mortgage application demand stalls as interest rates surge to highest level since July. Total mortgage application volume was essentially flat for the week, rising just 0.5% according to the Mortgage Bankers Association’s seasonally adjusted index. Read more.
(Construction Executive) Nonresidential construction spending stabilizes in January 2021, down 5% since January 2020. National nonresidential construction spending increased 0.9% on a monthly basis in January 2021 but is down 5% since January 2020, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $799.1 billion for the month. Read more.
(Forbes) There is lots to like in the like-kind exchange tax regs. The long-absent definition of real property for like-kind exchanges is finally available in regulations (T.D. 9935), with several other helpful amendments to the regime for taxpayers. Questions remain, particularly regarding intangible property, but the final rules provide assurances and some increased flexibility compared with the proposed rules. Read more.
(Fortune) Buying a new home? Expect to pay $24,000 more as the worsening lumber shortage pushes wood prices up 180%. It is often said renovations take twice as long and cost twice as much as you have budgeted for. But even that might be optimistic now, given the recent surge in lumber prices. Learn why.
(Marcus & Millichap) Commercial real estate 2021: Adapting to the new normal; trends, insights, and outlook for seven major CRE property types. Both the economy and commercial real estate face a dramatic pandemic-induced transformation that could reshape every investor’s strategy in 2021. To offer broader perspective, the Marcus & Millichap 2021 Investment Outlook features seven different property types and several property subtypes. Get the report.
COVID-19 Related News
(Construction Dive) With Biden's ETS deadline looming, feds find OSHA compromised worker safety.
On-site workers are at increased risk for COVID-19 because the Occupational Safety and Health Administration is not providing the level of oversight needed to keep them safe, according to a recently issued report from the U.S. Department of Labor's inspector general. Read more.
(Construction Dive) New PPP guidance cements formula change, spurs call to extend deadline. The SBA released new guidance allowing sole proprietors, independent contractors and the self-employed to use gross income rather than net profit to calculate the amount of Paycheck Protection Program funding they should receive. Read more.
(Forbes) IRS defines nominal for purposes of the employee retention tax credit: The definition might surprise essential businesses. Essential businesses have an additional hurdle to jump through if they are claiming an employee retention tax credit because of a full or partial shutdown based on the most recent guidance issued by the IRS. Learn why.
(Journal of Accountancy) Employee retention credit guidance and rising economic confidence. The IRS provided guidance on the employee retention credit, and CPA business leaders showed increased confidence in the economy for the coming year. Learn more in this podcast with transcript.
Economic News
(CNBC) Job growth surges in February on hiring jump in restaurants and bars. Nonfarm payrolls increased by 379,000 in February and the unemployment rate was 6.2%. Read more.
We will continue to keep you updated.
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).
