This week, Shannon talks to David Barnes with the City of Kirkland about our upcoming Residential Builders Council meeting. Join RBC and Built Green to learn more about green building incentives, how they work, and provide feedback to participating cities.

More details

Media Contact:
Nona Raybern, PR & Media Manager
Master Builders Association of King and Snohomish Counties
p 425.457.7067
m 425.208.6308

Master Builders Association Names Brian Holtzclaw President of Board of Directors

Born and raised in Washington state, Holtzclaw has been a practicing lawyer since 1993. His main interests have revolved around development and land use issues in the Pacific Northwest, focusing on meeting the ever-rising demand for housing across all segments of the market. He holds a law degree from the University of Puget Sound School of Law (now Seattle University) and a degree in economics from Whitman College.

The newly inducted Board of Directors will be rounded out with 1st Vice President Todd Levitt (Murray Franklyn Family of Companies), 2nd Vice President Cameron McKinnon (Gamut360 Holdings), Secretary Luellen Smith (Rhino Wine Cellars & Cooling Systems), and Immediate Past President Bonnie Geers (Quadrant Homes).

Holtzclaw currently serves as in-house counsel for Village Life, a community and housing development firm, as well as mayor pro tem for the city of Mill Creek in Snohomish County. MBAKS is thrilled to have his expertise to guide the Board of Directors into the new decade.

Founded in 1909, the Master Builders Association of King and Snohomish Counties (MBAKS) has grown to become the largest local residential homebuilders association in the United States. With more than 2,700 member companies, the association is dedicated to membership value, housing advocacy, community service, and financial stewardship throughout the Puget Sound region.

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.

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.