By Kate Wagner, Curbed Seattle

Until around 2007, McMansions mostly borrowed the forms of traditional architecture, producing vinyl Georgian estates and foam Mediterranean villas.

But in the last 10 years, this has begun to change: McMansions are now being constructed in architectural styles from the 20th century, specifically modernism. We are witnessing the birth and the proliferation of modernist McMansions: McModerns.

Though McModerns are commonly found in the places where modernism itself thrives—indoor-outdoor climates like the West Coast and the Southwest, and near liberal cities on the East Coast—they are also beginning to pop up in burgeoning tech hotbeds south of the Mason-Dixon, such as central North Carolina and Atlanta, Georgia. McModern houses are following the trail left behind by NPR, Chipotle, and MacBook Pros: They've become popular with younger, tech-savvier, and more highly educated individuals.

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Contact: data@mbaks.com

While our local inventory is rising, we are still the lowest in Washington State, with the state average at 2.17. Months of inventory in June 2024 were Snohomish (1.37), King (1.94), and Pierce (2.00). As the inventory grows, it is evident that mortgage rates are a large player in affordability regarding housing market worries.

Read the full July Builders Bulletin:

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.

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.

 

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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.