Page 20 THE EVERETT ADVOCATE – FRiDAy, JunE 9, 2023 Mayor announces rescheduled date for Kids to Parks Day event A fun day with activities for kids and families at Swan Street Park M ayor Carlo DeMaria is pleased to announce that the annual Kids to Parks Day event has been rescheduled and will be held on Saturday, June 17, at Swan Street Park from 11 a.m. to 1 p.m. All families are invited to enjoy various activities, interactive games, inflatable attractions, characters, face painting, music and much more. Kids To Parks Day is a nationally recognized day celebrated annually on the third Saturday of May. However, the originally scheduled date was postponed due to unfavorable weather conditions. The goal is to get kids and families outside and off their electronic devices to utilize and enjoy their community’s recreational resources, parks and playgrounds. The City of Everett is joining in the celebration by inviting our youngsters to participate in this day by hosting an event at Swan Street Park for all to attend. For more information, please visit cityofeverett.com/events/kids-toparks-day. Law Offices of JOSEPH D. CATALDO, P.C. “ATTORNEYS AND COUNSELORS AT LAW” • ESTATE/MEDICAID PLANNING • WILLS/TRUSTS/ESTATES • INCOME TAX PREPARATION • WEALTH MANAGEMENT • RETIREMENT PLANNING • ELDER LAW 369 Broadway Everett, MA 02149 (617)381-9600 JOSEPH D. CATALDO, CPA, CFP, MST, ESQUIRE. AICPA Personal Financial Specialist Designee ~ Legal Notice ~ CITY OF EVERETT RELOCATING OUT OF MASSACHUSETTS FOR ESTATE TAX SAVINGS I f you were to move to Florida, Texas, New Hampshire, or to any other state that has no estate tax, or to a state with a much higher estate tax exemption than Massachusetts, you still need to be aware that if you own real estate in Massachusetts, you will most likely have to pay a Massachusetts estate tax. Let’s say you have a rental property in Boston worth $750,000 and you live in Florida. You also have $1million in stocks, bonds and savings accounts. The Estate Tax Bureau in Massachusetts will require you to file a Massachusetts estate tax return. If you divide $750,000 by $1,750,000, you arrive at 42.86 percent of your total estate located in Massachusetts. You would then calculate the Massachusetts estate tax based upon the $1,750,000. After that initial tax is calculated, you would then multiply it by 42.86 percent to arrive at the balance due to the Commonwealth of Massachusetts. In this example, the initial PUBLIC HEARING FOR PETITION FROM MASSACHUSETTS ELECTRIC COMPANY D/B/A NATIONAL GRID OF NORTH ANDOVER, MASSACHUSETTS To all parties interested in the public hearing. Be it hereby ordered: Massachusetts Electric Company d/b/a National Grid of North Andover, Massachusetts, that it desires to construct a line of underground electric conduits, including the necessary sustaining and protecting fixtures, under and across the public way or ways hereinafter named. The following are the streets and highways referred to: Plan # 30783332 Norman St & Air Force Rd - National Grid to install beginning at a point approximately 40 feet northwest of the centerline of the intersection of Norman St & Air Force Rd and continuing approximately 10 feet in a northeast direction. National Grid is petitioning on behalf of the customer to excavate the sidewalk to install (1) 3” PVC conduit to serve a street light control cabinet owned by the City of Everett. Wherefore it prays that after due notice and hearing as provided by law, it be granted permission to excavate the public highways and to run and maintain underground electric conduits, together with such sustaining and protecting fixtures as it may find necessary for the transmission of electricity, said underground conduits to be located substantially in accordance with the plan filed herewith marked: Norman St & Air Force Rd - Everett - Massachusetts. Hearing to be held with the Everett City Council, held on Monday at 7:00PM, on the 26th of June, 2023 at the Everett City Council Chambers, 3rd Floor, Everett City Hall. June 09, 2023 Massachusetts estate tax would approximate $81,000. You would then multiply $81,000 x 42.86 percent to arrive at a balance due to the Commonwealth of $34,717. One way to avoid this $34,717 estate tax is to place the rental real estate into a limited liability company (LLC). Once title is transferred to the LLC, you will own a membership interest in the LLC which is similar to owning stock in a corporation. As a Florida resident, the value of the membership interest in the LLC (i.e. the value of the real estate) will not be part of your Massachusetts taxable estate thereby eliminating the need to file Form M-706, Massachusetts Estate Tax Return. If you are a resident of Florida, if you decide to keep your old primary residence in Massachusetts to reside there during the summer months for example, if you place that residence into an LLC, you may not be able to claim the capital gain exclusion of $500,000 for a married couple upon the sale of your primary residence. However, if the old primary residence was owned by you in your own name for at least two of the five years prior to the sale, you would still be able to claim the $500,000 exclusion even if for three of those five preceding years, title was in the name of the LLC. If the rental property located in Massachusetts is held by the LLC and you are the only owner of the membership interest, then no separate tax return needs to be filed for the LLC as it is a single member LLC for tax purposes. Likewise, if a Trust owns the membership interest in the LLC, it is still considered to be a single member LLC and no separate tax returns need to be filed. The rent income and expenses are reported on Schedule E. If two or more individuals or two or more Trusts own membership interests in the LLC, then partnership income tax returns would need to be filed. If a partnership income tax return needs to be filed, each member of the LLC will receive a K-1 form in order to report his or her distributive share of the net rental income or loss on his or her individual income tax return. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation.
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