Your McCarthy Update 

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
June 28, 2021

Construction & Real Estate News
(CNN Business) Bidding wars. All-cash offers. Homes selling for $1 million over asking. The housing boom has officially reached the ridiculous stage. Despite surging home prices that are rising at the fastest pace on record, the Federal Reserve continues to prop up the housing market by purchasing $40 billion of mortgage bonds each month. Learn why.
 
(GlobeSt.com) White House Says Materials Shortages 'May Be Short-Lived.' Supply shortages are also exacerbated by a lack of skilled labor, and those problems won’t be solved by falling materials prices and resolved supply issues. Read more.
 
(GlobeSt.com) REIT M&A Poised to Reach New High. As companies emerge from the pandemic, M&A activity has clocked in at $70 billion year-to-date. Overall, REITS are up almost 22% in 2021. Learn why.
 
(GlobeSt.com) Inflation, Interest Rates Brings Money into CRE. There is tremendous commercial real estate market liquidity, and interest rates are low. The $5.5 trillion stimulus is rippling through the economy. In a recent company video, John Chang, senior vice president and director of research services at Marcus & Millichap, said that stimulus money is driving wage pressure and inflation. It is also pushing money supply to 26% above pre-pandemic levels. Learn why.
 
Business and Economic News
(Reuters) Fed officials say 'temporary' inflation surge may last longer than thought. Atlanta Fed President Raphael Bostic said with growth surging to an estimated 7% this year and inflation well above the Fed's 2% target, he now expects interest rates will need to rise in late 2022. Learn why.
 
(The Economist) Americans are quitting their jobs in droves. It is a subtle indication of optimism about the economy. Read more.
 
(The Washington Post) The economy isn’t going back to February 2020. Fundamental shifts have occurred. A new era has arrived of greater worker power, higher housing costs and very different ways of doing business. Learn more.
 
COVID-19 Related News
(Accounting Today) Tax pros caution clients on taking monthly child tax credit. Some tax professionals are urging clients to consider opting out of receiving new monthly payments of the child tax credit because they could end up having to pay back that money next filing season. Learn why.
 
(Associated Press) CDC extends eviction moratorium a month, says it’s last time. Discover why.
 
(Journal of Accountancy) SBA may be dropping PPP Loan Necessity Questionnaire requirement. The Associated General Contractors of America (AGC) said that the U.S. Small Business Administration (SBA) is in the process of removing the requirement that Paycheck Protection Program (PPP) borrowers submit a Loan Necessity Questionnaire when applying for forgiveness on loans of $2 million or more. Learn more.

(U.S. Department of the Treasury) The Treasury Department has officially opened up its $2 billion Coronavirus Economic Relief for Transportation Services (CERTS) grant program to bus, motorcoach, school bus and passenger companies hit hard by the Covid-19 pandemic. Learn 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).