Your McCarthy Update 

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
July 6, 2021

Accounting & Tax News
(IRS.gov) IRS Releases its 2021 List of Tax Schemes. Read more.
 
(Tax Foundation) State Tax Changes That Took Effect on July 1. Although the majority of state tax changes (individual and corporate income tax changes) take effect at the start of the calendar year, some changes (sales and excise tax changes) often correspond with the beginning of a fiscal year. Thirteen states had notable tax changes take effect on July 1, the first day of FY 2022 for every state except Alabama, Michigan, New York, and Texas. Read more.

(New York Times) Budget deficit projected to hit $3 trillion as pandemic spending buoys economy. The U.S. economy is rebounding from the pandemic downturn faster than expected and is on track to regain all the jobs lost during the coronavirus by the middle of next year, partly as a result of enormous amounts of federal spending that will push the budget deficit to $3 trillion for the 2021 fiscal year, the Congressional Budget Office said on Thursday. Read more.
 
(Tax Foundation) Fact Check: U.S. Corporate Tax Expenditures and Effective Tax Rates in Line with OECD Peers. A recent analysis by Reuters suggested that U.S. firms pay less income tax than foreign competitors, in part because “the U.S. tax code is unusually generous with tax breaks and deductions,” also known as corporate tax expenditures. However, the Reuters analysis is at odds with other data and studies indicating that U.S. corporate tax expenditures and effective tax rates are about on par with those in peer countries in the OECD. Read more.
 
(Tax Foundation) How the Tax Code Handles Inflation (and How It Doesn’t). The Bureau of Economic Analysis report released last week stated that the Personal Consumption Expenditures (PCE) price index rose 3.9% since last May, the highest annual increase since August 2008. Fortunately, since the 1970s, the tax code is better structured to account for inflation. In other ways, though, a return of inflation would create tax problems for the real economy. Read more.
 
Business & Economic News
(Harvard Business Review) Why You May Actually Want to Go Back to the Office. When leaders start talking about getting people to return to the office, it’s natural for many employees to resist. If you’re dreading going back to the office, it might help to have a reminder of how in-person work can actually benefit you — not just your company. Learn three ways the office can make your working life easier.

(Harvard Business Review) How to Develop a Covid-19 Employee Vaccination Policy. Read more.

(Kiplinger) Protect yourself against new ID-Theft schemes. Learn how.
 
(New York Times) U.S. Added 850,000 jobs in June, and wages rose. The resurgent economy delivered the strongest one-month employment gain since last summer, the latest promising signal about the recovery. Learn why.
 
Construction & Real Estate News
(GlobalSt.com) Cap rates rise for net lease and industrial. Industrial cap rates increased by 18 basis points to 6.89%. Single-tenant retail cap rates increased by 11 basis points to 6.02%, while office cap rates remained unchanged in the second quarter. Read more.

(GlobalSt.com) New construction homes are increasingly out of reach for many buyers. The affordability gap will probably be worse next year. Learn why.

(GlobalSt.com) Goodbye 80s mall, hello town center: Here’s what next for U.S. malls. Mixed-use properties are commanding higher rents, according to a CoStar study of 37 malls. Read more.

(Marcus & Millichap) Hot housing market spills over into multifamily rentals. Read more.

COVID-19 Related News
(Brinker Simpson Blog) UPDATE: Telework and Related Tax Implications. The Pennsylvania Department of Revenue issued updated guidance on telework, effective July 1, 2021. Learn more.

(NAHB Now) CDC Extends Eviction Moratorium Through July 31; White House Announces New Federal Initiatives to Prevent Evictions. 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).