THE EVERETT ADVOCATE – FRiDAy, OCTObER 6, 2023 Page 21 Out of State Property and the Mass Estate Tax M assachusetts General Laws Chapter 65C, Section 1(f) specifi cally exempts from the Massachusetts estate tax tangible personal property and real estate located outside of Massachusetts. The Commonwealth of Mass directs taxpayers to calculate the federal gross estate for estate tax purposes and then provides for a reduction of out of state tangible personal property and out of state real estate. Under the current proposed tax relief package that is now on Governor Healey’s desk (that she has until October 8, 2023 to sign), the estate tax exemption will be increased to $2,000,000. If a taxpayer dies with a $2,000,000 taxable estate, the $2,000,000 is reduced by $60,000 in order to arrive at the adjusted taxable estate, or $1,940,000. The Table B Computation of Maximum Credit for State Death Taxes results in a credit of $99,600. This table is utilized by the Commonwealth of Massachusetts to determine the estate tax due when someone dies in Massachusetts. Under the old federal estate tax law, the IRS allowed a credit for state death taxes on the federal estate tax return. The federal government no longer allows for this tax credit. Massachusetts, however, actually uses that table to determine the Massachusetts estate tax due. The Massachusetts estate tax return actually piggy backs the prior Federal estate tax return based upon the 1999 Revision date. We, as preparers, have to prepare the current Massachusetts estate tax return and the federal estate tax return, Form 706, as it existed back in 1999. The good news is that an estate of $2.5million would only result in $44,000 in Massachusetts estate taxes. Compare this with the current es~ Home of the Week ~ tate tax provision in Massachusetts which would result in an estate tax of $143,600. Quite a big diff erence. This is due to the $99,600 credit against the Massachusetts estate tax based upon the fi rst $2million of the gross estate being exempt from the estate tax. Only the estate value over $2million is actually subject to tax. The Dassori v. Commissioner of Revenue 2016 decision involved a case of fi rst impression. The probate court judge decided the case against the Commonwealth of Massachusetts holding that a real estate investment in Paris, France was not subject to the Massachusetts estate tax. The real estate in question was held in a vehicle similar to a nominee realty trust utilized by real estate attorneys in Massachusetts. The Commonwealth tried to argue that the real estate investment was intangible personal property due to the nature of the taxpayer’s interest in the entity that actually held title to the real estate. The probate judge considered the investment to be real estate based upon Massachusetts law and, as such, the real estate could not be subject to estate tax by Massachusetts. Otherwise, that would represent a due process violation under the 14th amendment to the Constitution. Joseph D. Cataldo is an estate planning/elder law attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net SAUGUS....BEST unit in Hillview West! This recently renovated unit has been done to perfection! Unit features 2 bedrooms, 2 NEW baths (2021), kitchen with NEW quartz counters, large peninsula for seating, stainless steel appliances (2021), great open floor plan to dining room/living room combination with slider to patio, main bedroom offers NEW bathroom (2021) wtih custom, standup shower, NEW (2021) laminate flooring throughout, central air, washer and dryer hook-up in unit, replacement windows (all but slider), updated electric hot water heater, extra storage bin, one parking space, inground pool. Great unit - Great investment! You won’t be disappointed! Offered at $399,900 335 Central Street, Saugus, MA 01906 (781) 233-7300 CITY OF EVERETT - LEGAL NOTICE - BOARD OF APPEALS 484 BROADWAY EVERETT, MASSACHUSETTS 02149 TO WHOM IT MAY CONCERN: This notice is to inform you that a public hearing will be held on Monday October 16, 2023 at 6:00 PM, Everett City Hall, 3rd Floor George Keverian Hearing Room. All interested parties may attend and opinions will be heard regarding the following petition. Whereas a petition has been presented by: Property Address: Map/Parcel: Building Permit: 70 Everett St. D0-03-000161 B-23-293 Person Requesting: 140 Tremont St. LLC 140 Tremont St. Everett, MA 02149 PROPOSAL: To expand the existing two-family residential structure and convert it to a six-unit residential structure. Reason for Denial: Permit was denied in accordance with the City of Everett Zoning Ordinance as follows: Violations: • Pursuant to Section 4(A) of the Zoning Ordinance, the proposed multi-family residential use is not permitted in the Dwelling zoning district. A use variance is required. • Parking shown on the lot total Eight (8) where 12 is required. The applicant must either obtain a variance or participate in the Transportation Demand Management program, pursuant to Section 35 of the Zoning Ordinance. • Pursuant to Section 4(B)(2)(c), the maximum allowed Floor Area Ratio (FAR) is 0.5. The proposed FAR is 1.1. A variance is required. • Pursuant to Section 17(O)(5) of the Zoning Ordinance, any parking lot containing more than five parking spaces must “have an access road with a minimum of eighteen (18) feet to allow ingress and exiting at the same time.” The proposed access drive is only twelve feet. A variance is required. BOARD OF APPEALS FOR THE CITY OF EVERETT, MASSACHUSETTS Mary Gerace - Chairman Roberta Suppa - Clerk of Board of Appeals September 29, October 6, 2023 View the interior of this home right on your smartphone. View all our listings at: CarpenitoRealEstate.com
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