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THE MALDEN ADVOCATE–Friday, March 1, 2024 Page 19 OBITUARIES Chris Constantine Mirageas Passed away peacefully on February 22, 2024. Chris was born in Malden, MA to his loving parents, the late Constantine and Demetra (Makrys) Mirageas. He was adored beyond measure by his late grandparents Christos & Koula Mirageas and Nicholas and Angeliki Makrys. Chris leaves behind his son, Chris Jr., of Eliot, ME. He is also survived by: his sister Ann Mirageas of Bedford, NH; sister Kathy Perrone and her husband Jerry of Melrose, MA; loving uncle to Angelica Murphy and her husband Colin of Malden, MA Jerry Perrone of Manchester, NH and Phillip Perrone of Charlestown, MA. In addition, he will be missed by many dear, lifelong friends. A graduate of Northeast Metropolitan Regional Vocational High School in Wakefi eld, MA, where he obtained his degree in welding. This education, along with his natural aptitude for auto mechanics and auto body served him well. “The Greek” operated C&C Collision, a successful business, for over 40 years until his retirement in 2020. He was a hardworking, simple t-shirt and blue jeans guy. From a very young age he showed his love and fascination with cars. You would often fi nd him under the hood of many a car including his beautifully restored, red 1962 Chevy Impala. Ann and Kathy would like to thank those who called, visited, checked in or showed random acts of kindness. Special love goes out to Basil, Joe, Paul, Casey, and his cousins, Nick & John. We are forever grateful. Services were held at the A.J. Spadafora Funeral Home, Malden on Tuesday, February 27th Burial was private. A celebration of life will be held at a later date. Donations may be made in Chris' memory to the Northeast Regional Vocational High School 100 Hemlock Road, Wakefi eld, MA 01880 John T. "Jack" Garrity Of North Reading, formerly of Malden and Sarasota, Florida. Passed away surrounded by his REAL ESTATE TRANSACTIONS BUYER1 THALI, AMOGH BUYER2 SELLER1 DEJESUS, MARCIO SELLER2 family on February 23rd, at the age of 104. He was an amazing man who will be profoundly missed by his family. Beloved husband of the late Lillian (Mahoney) Garrity. Predeceased by his sisters, Harriet Turco and Helena Dunlap. Devoted father of Lillie Fournier and her husband, Robert, of Sarasota, Florida; June Fagan and her husband, Joseph, of Wilmington; and Lorri McBride and her husband, David, of Andover. Loving “Papa” to Joseph Fagan III and his wife, Anna; Caroline Wilcox and her husband, Bryan; Elizabeth Kramer and her husband, Benjamin; and Laura Zawalich and her husband, Daniel. Proud great grandfather of Theodore, Charles, Violet, Kathleen, Madeline, and Louise. Retired Chief of the Malden Fire Department. Graduate of Malden High School Class of 1938. Enlisted and served with United States Army Air Forces' 14th Flying Tigers as a radio-operator and gunner during WWII, fl ying more than fi fty combat missions. Relatives and friends are invited to pay respects at the Nichols Funeral Home, 187 Middlesex Avenue, Wilmington on Friday, March 1, 2024, from 4 PM to 8 PM. A Mass of Christian Burial shall be celebrated at the Immaculate Conception Church, 600 Pleasant Street, Malden, on Saturday, March 2, 2024, at 10 AM. Please go directly to the church. Services will conclude with burial and military honors at Forestdale Cemetery, Malden. In lieu of fl owers, donations may be made in Jack’s name to the Relief Association of the Malden Fire Department, One Sprague Street, Malden, MA 02148. Leah Knickle Of Malden. Born in Melrose and a longtime Malden resident, Leah, at 44 years of age, passed away unexpectedly at the CHA Whidden Memorial Hospital in Everett early morning on February 17th. Devoted mother of OBITUARIES | SEE PAGE 20 CAPITAL GAINS TAX EXCLUSION AND IRREVOCABLE TRUSTS ½ of the capital improvements attributed to wife, or $15,000. Selling expenses of $25,000. In this example, the cost basis P eople often question if they transfer their principal residence into an irrevocable trust, will they still be entitled to the capital gains tax exclusion upon a subsequent sale, pursuant to Internal Revenue Code Section 121. The answer is yes. A married couple fi ling a joint income tax return has the right to exclude up to $500,000 of capital gain on the sale of their principal residence. The limit is $250,000 for a single taxpayer. The capital gain is simply the diff erence between the selling price and the cost basis of the home. The cost basis of the home is determined by adding the original purchase price, plus capital improvements over theyears as well as expenses associated with selling the home such as a broker’s commission, tax stamps, legal fees, fi xing up expenses and any other expenses associated with the sale. In some cases, you also have the benefi t of using the date of death value as part of the cost basis if one of the spouses were to die. For example, if husband and wife purchased a home 25 years ago for $250,000 and the husband died 10 years ago when the home’s value was $350,000, upon a subsequent sale of the home by the wife, the cost basis is computed as follows (also assume capital improvements prior to husband’s death were $30,000 and selling expense were $25,000): ½ of the $250,000 purchase price is allocated to wife, or $125,000. She only owned 50% of the home. ½ of the fair market value of home at the time of husband’s death is $175,000 ($350,000 x ½, since the husband only had a 50% interest in the home at the time of his death). would be $340,000 ($125,000 + $175,000 + $15,000 + $25,000). If the home were sold for $575,000, the capital gain would be $235,000. The entire gain would be non-taxable. Since the husband passed away, one half of the fair market value of the home at thetime of his death enters into the calculation of the wife’s cost basis. This is referred to as the “step-up in cost basis”. For the $500,000 capital gains tax exclusion to apply, the married couple must have lived in the home for 2 out of the previous 5 years prior to the actual sale. Since the irrevocable income-only trust is designed to qualify under the “grantor-type” trust rules, the law treats the Settlors/Donors/Grantors of the trust as the owners for tax purposes. What makes the trust a grantor-type trust for capital gains tax purposes is the reserved right in the Settlors to direct where the trust principal and/or income of the trust can go during the Settlors’ lifetime. In accordance with Internal Revenue Code Section 674(a), this retained power is what makes the trust a grantor-type trust for capital gains tax purposes, thereby preserving the capital gains tax exclusion. This is referred to as a lifetime special power of appointment. Most often, a lifetime special power of appointment and a testamentary special power of appointment provision is included in an irrevocable Trust. The testamentary special power of appointment is designed to allow the Settlor the ability to change the ultimate benefi ciary of the Trust by exercising that power of appointment via the Settlor’s Last Will and Testament being submitted to a probate court upon death. A power of appointment is essentially a power to redirect where the Trust principal will go. This also results in an incomplete gift for gift tax purposes. 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 master’s degree in taxation. Copyrighted material previously published in Banker & Tradesman/The Commercial Record, a weekly trade newspaper. It is reprinted with permission from the publisher, The Warren Group. For a searchable database of real estate transactions and property information visit: www.thewarrengroup.com. ADDRESS 13 PRESTON ST CITY MALDEN DATE 01.22.24 PRICE 755000\

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