THE EVERETT ADVOCATE – FRiDAy, DECEmbER 2, 2022 Page 11 GREATER BOSTON LEAGUE ROUNDUP: Everett, Malden & Revere Boys Basketball tip off tonight in Inaugural Ron Bennett Jamboree in Lynn By Steve Freker he new varsity rosters are still “hot off the press” as 12 local boys basketball teams hit the hardwood tonight for their first scrimmage action. And it will be a doozy! It’s the first-ever Ron Bennett Boys Basketball Jamboree and it begins at 4:00 p.m. at Lynn English High School (LEHS), former 41-year coaching home for Bennett, who is the winningest high school coach in the history of the city of Lynn. Coach Bennett was the boys’ basketball head coach at Lynn English from 1965-2013 and the baseball head coach at LEHS from 1975-2013. In 41 years steering the two major Bulldog sports seasons, he rang up over 800 coaching wins. With two other like-minded T preseason jamboree events having come and gone in Lynn, Lynn English Athletic Director Dick Newton brought this type of event back this year, this time honoring his own former coach. Newton was a standout for English in the late 1970s and early 1980s in both sports under Coach Bennett. “We wanted to bring it back in his name,” Newton said, “I’m lucky I am in a position to honor him. He did so much for the school and the kids.” The jamboree includes six games, each 45 minutes after the previous game, with the first beginning at 4 p.m. The scrimmage games will consist of two eight-minute quarters. Competing in this inaugural event will be 12 teams in all, including seven of the eight Greater Boston League (GBL) varsity teams, including host Lynn English. Three The late former Lynn English boys’ basketball and baseball Head Coach Ron Bennett coached 41 years until 2013 at age 75. He passed away at 80 in 2018. Advocate readership teams – Everett, Malden and Revere – will be competing tonight, along with three other GBLers: Chelsea, Lynn Classical, Somerville. KIPP Academy, Lynn Tech and Wakefield round out the even dozen dusting it up at Lynn English High tonight. Locally, Coach David Leary’s Revere High Patriots will open ROUNDUP | SEE PAGE 22 Cost Basis Of Inherited Property T he cost basis of property acquired from a decedent is equal to the fair market value of such property at the time of the decedent’s death. This is pursuant to Internal Revenue Code (IRC) Section 1014(a)(1). This is referred to as the step up in cost basis. If real estate valued at $500,000 is devised pursuant to an individual’s Last Will and Testament or pursuant to the terms of a living Trust, the recipient of this real estate receives the benefi t of a cost basis equal to the $500,000. It’s a new starting point. It’s as if the benefi ciary of the Will or Trust paid $500,000 for the real estate. If the real estate is sold shortly thereafter for $500,000, no capital gains tax will have to be paid. If the property were sold two years later for $600,000, the capital gain to be reported would only be $100,000. It is therefore very important to take into consideration the value of this step up in cost basis when creating an estate plan. Capital gains taxes can be as high as 23.8% federal and 5% Mass. With the new Millionaires tax in Massachusetts, some capital gains could be taxed at an additional 4% rate. Once taxable income exceeds $1,000,000, the excess income is taxed at a rate of 9%. The capital gain could actually push you over the $1,000,000 of income. Consequently, it is even more important to take advantage of the step up in cost basis in order to eliminate or minimize the actual capital gain itself. If appreciated real estate or stocks are simply given to your children outright, the cost basis in the hands of your children would be your cost basis. This is referred to as a carryover basis. You would look to what you originally paid for the real estate or stock, improvements to the real estate, depreciation taken if rental property, etc., in order to determine cost basis. Outright gifts like this do not make much sense in the vast majority of cases. It would be better to place the property in a living Trust in order to avoid probate, obtain the step up in cost basis, provide for estate tax savings and possibly protect against a nursing home if that is one of the objectives. Generally, the capital gains tax savings to the children upon a future sale of appreciated real estate or stock far outweighs the negative of having to pay a Massachusetts estate tax due to the real estate and stock being included in the decedent’s taxable estate. As an example, a $5,500,000 taxable estate consisting of appreciated real estate and stock would cost approximately $460,000 in Massachusetts estate taxes. If the original cost basis of the real estate was only $500,000 because the property was purchased 50 years ago and/or fully depreciated (if rental property), the capital gains tax savings would approximate $1.425million. The net savings to the children would be $965,000. There would be no federal estate tax as the current federal exemption is over $12million. Keep in mind that under IRC Section 1223(9), the holding period for assets received from a decedent shall be considered to be more than one year, even though the assets may have been sold by the beneficiary within one year from the date of death. Pursuant to IRC Section 1223(2), the holding period of the person making an outright gift plus the holding period of the recipient of the gift is added together in order to determine if a short-term (less than one year) or long-term (more than one year) capital gain would be recognized upon a subsequent sale. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. Need a hall for your special event? The Schiavo Club, located at 71 Tileston Street, Everett is available for your Birthdays, Anniversaries, Sweet 16 parties and more? Call Paul at (617) 387-5457 for details.
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