November 2018 Builder's Bulletin: Washington’s Labor Force Continues to Grow

By MBAKS Senior Policy Analyst Allison Butcher

The Employment Security Department’s latest Monthly Employment Report shows a strong labor market in Washington and Seattle. As reported in the November Builder’s Bulletin, Washington’s unemployment rate for September fell to 4.4 percent, representing a 42-year low based on the Bureau of Labor Statistics data series. The Seattle/Bellevue/Everett unemployment rate was 3.4 percent.

The Builders' Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, State of the Cities Data Systems, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report:

Master Builders Association Hires Kathleen Sims, Former Weyerhaeuser Executive, as its New Executive Director

Bellevue, Wash—March 1, 2018—The Master Builders Association of King and Snohomish Counties (MBAKS) announced the selection of Kathleen (Kat) Sims as its new executive director. Sims is the first woman to lead the association in its 109-year history. As the former vice president of environmental affairs, sustainability, and corporate responsibility of Weyerhaeuser Company, she is an influential leader accustomed to the building industry. She begins her new role Monday, March 5.

“Kat’s depth and breadth of experience as an executive, real estate attorney, and coalition builder will be a tremendous asset for our association,” said Erich Armbruster, the association’s board president. “She will be an excellent representative for Master Builders Association as we expand our influence with regional leaders in addressing the growth and critical housing issues facing our region. I could not be more pleased that such an exceptional leader is taking the helm.”

Sims is a seasoned attorney specializing in real estate law, with more than 10 years of in-house business management expertise. Prior to her most recent position at Weyerhaeuser, Sims worked as vice president of government affairs at Plum Creek Timber Company Inc., which merged with Weyerhaeuser in 2016. She also served as senior director of sustainability and senior director, real estate law at Plum Creek. Early in her career, Sims was a partner at Alston, Courtnage & Bassetti LLP and an associate attorney at Foster, Pepper & Shefelman LLP (now Foster Pepper), where she provided strategic legal advice to developers, landowners, and lenders.

“Developing adequate housing is vital to the health of our region and the Master Builders Association needs to be at the table as discussions are made that impact housing availability,” said Sims. “I’m looking forward to forging new partnerships and locking arms with the association’s leadership, members, and staff to help solve critical issues affecting our communities.”

“Having an opportunity to engage an experienced leader with Kathleen’s credentials is a terrific outcome for our association,” said Mike Walsh, MBAKS 2017 board president and head of the executive search committee. “Kat has sound judgement and common sense and will be an effective voice for Master Builders Association.”

About MBAKS

Founded in 1909, the Master Builders Association of King and Snohomish Counties has grown to become the largest residential homebuilders association in the United States. With nearly 3,000 member companies, the association is dedicated to membership value, housing advocacy, community service, and financial stewardship throughout the Puget Sound region.

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Builders

12/14/2018

Make the New Business Income Deduction Work for You

Many businesses will benefit this year from the new 20 percent qualified business income deduction. This deduction applies to "pass-through entities:" partnerships, S-corporations, sole proprietorships, and most LLCs. However, if your taxable income from all sources exceeds $157,500 for an individual or $315,000 for a married couple filing jointly, your 20 percent deduction could be phased out. For these higher-income business owners, the deduction is limited to your share of your most advantageous calculation:

50 percent of the W-2 wages your company pays OR
2.5 percent of the purchase price of business fixed assets (with some limitations), plus 25 percent of W-2 wages paid.

The above assumes you are not a "Specified Service Trade or Business," but few construction-related companies are.

Accounting

PRO TIP: If your company files a partnership return, beware the guaranteed income trap. Guaranteed income paid to the partners is not considered pass-through income eligible for the 20 percent deduction. Neither is the S-corp owner's W-2 pay, but at least that counts toward the 50 percent/25 percent W-2 wages in the above calculations, so it can help the owner qualify for the 20 percent deduction.

For more information, consult your CPA. There’s still time for last-minute tax strategies involving owner payroll, paying a spouse, or retroactive S-corp elections, among others.

Brooke Witt is a CPA at Duncan Witt CPA Group PLLC, a Bothell-based accounting firm specializing in tax advice for families and small businesses in Snohomish and King counties looking for someone to trust. For high-quality, comprehensive accounting and tax services, visit their website or reach out to them at 425.501.9000.

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Builders

02/05/2018

Membership Minute: What the Hirst Fix Means for You