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.

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USEPA photo by Eric Vance

LDC Inc. went to Washington, D.C. October 24 to advocate for sensible stormwater management regulations that lead to clean water for communities instead of mountains of paperwork.

Representing builders and developers who do business in Environmental Protection Agency Region 10, Clay White, principal planner, joined nine other NAHB members from across the country to meet EPA Administrator Scott Pruitt and his top local enforcement officials.

NAHB members suggested several ways EPA could improve the process, including:

• A simplified permit process for small lots. EPA's compliance template for single-family homes in large subdivisions that could also serve as a streamlined permit: it's concise and written in "builder language" because NAHB helped develop it.
• A "find it, fix it" approach. Rather than penalize first-time violators, EPA inspectors should provide compliance assistance during site visits and allow builders to correct minor infractions so they can do it right the next time.
• Better coordination among regulators. Multiple visits from local, state and federal inspectors to the same site can result in very different observations and citations. The EPA needs to allow the states, and not themselves, to play the lead role in stormwater enforcement.
• Continued participation in EPA's "Smart Sectors" Program. Homebuilders were invited to participate this business community partnership to develop sensible regulations while protecting the environment and public health.

White was pleased at EPA's response. "It was tremendous to meet with Administrator Pruitt and the EPA team on issues that are impacting our building community. I believe that this meeting will result in positive outcomes for the builders in our region."

For stormwater management resources, visit the NAHB Stormwater Toolkit.

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.