As reported in December, the Federal Open Markets Committee (FOMC) elected to raise the federal funds rate by 25 basis points to a targeted range of 2.25 to 2.5 percent. The committee cited a strong labor market, low unemployment and increased household spending and economic activity. The decision has financial experts speculating on how many rate hikes, if any, will occur in 2019. On average, the forecast is for two rate hikes, which FOMC ... more
Affordable Housing
2019 Construction Outlook Indicates Inflation, Wage Pressure
Rates of construction work under contract, but not yet completed, have risen dramatically in the West, according to the Associated Builders and Contractors Backlog Indicator. Technology-based construction projects are driving backlog growth to almost 11 months, particularly for markets like San Jose and Los Angeles. While that means that construction companies can expect to be very busy through 2019, it doesn’t necessarily mean that margins will ... more
LIHTC Partnerships Impacted by Limitations on Business Interest
Due to the changes in the federal tax law resulting from the passage of the 2017 Tax Cuts and Jobs Act, the deduction for business interest can be severely limited for many taxpayers for tax years beginning after December 31, 2017. The interest deduction cannot exceed the sum of: Business interest income for the tax year 30% of the taxpayer’s adjusted taxable income Taxpayer’s floor plan financing interest (applicable to auto ... more
Clarify Your Not-for-Profit’s ‘Story’ in Financial Statements
Over more than 30 years of work with not-for-profits, the team at Lindquist, von Husen & Joyce LLP has looked for new ways to help organizations share their unique story. Often, we help them tell it through their numbers. Numbers are a language, but sometimes they can become a foreign language in financial statements. When reviewing the financial statements of most not-for-profit affordable housing developers, for example, we’ve seen that ... more