Page 18 THE MALDEN ADVOCATE–Friday, April 21, 2023 For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net MASSACHUSETTS ESTATE TAX EXEMPTION INCREASE T he Massachusetts House of Representatives on April 13, 2023 passed tax legislation that included increases in the rental deduction, reducing the short-term capital gains tax rate from 12% to 5%, creating a refundable child tax credit, a doubling of the circuit breaker tax credit from $1,200 to $2,400, increasing the earned income credit, several other provisions as well as an increase in the estate tax exemption from $1million to $2million. The increase in the estate tax exemption is a step in the right direction. $1million is simply way too small of an exemption. $2million is better but I’d like to see even higher. There are so many taxpayers over the $1million threshold that the state had to increase it. Too many people have moved to states that are more tax friendly. New Hampshire has no estate tax. Florida has no estate tax. Texas has no estate tax. For the few states that do have an estate tax, the exemptions are much higher than in Massachusetts. A $2million exemption is certainly much better than $1million but as real estate and the stock market continue to rise in the years to come, those exemptions might not go far enough. There may be down markets but inevitably the real estate market and stock market are bound to rebound if history repeats itself. Many taxpayers have simply relocated to more tax-friendly states in order to avoid not only the Massachusetts 5% income tax but to avoid the estate tax altogether. The federal estate tax exemption is now $12.9million. Although it is scheduled to sunset and drop back down to $6million in 2026, it is still much more than the exemption in Massachusetts. The good news is the house’s version of the new estate tax law provides for the estate tax to be assessed only on the value of the gross estate over $2million, not the first $2million, once you surpass that threshold. A married couple can then structure their estate, if they so choose, in such a fashion as to leave $4million Massachusetts estate tax free to their children by making sure each spouse capitalizes on his or her $2million exemption. This increase in the exemption is long overdue. Let’s hope the Senate passes its version of the tax package quickly and a final bill is agreed to.There are simply too many taxpayers that will continue to leave the state in order to avoid the Massachusetts estate tax. Even if they continue to own real estate in Massachusetts, they might be inclined to transfer their real estate holdings into limited liability companies to avoid having the Massachusetts real estate being subject to the Massachusetts estate tax. The non-resident will be deemed to own an intangible membership interest in a limited liability company that results in the value of the interest not being taxable in Massachusetts. This would be similar to owning stock in Tesla. As a Florida resident, the Tesla stock would not be subject to the Massachusetts estate tax. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. REAL ESTATE TRANSACTIONS BUYER1 YU, HUIYING BUYER2 SELLER1 POMA-BERNAL, CARLOS E SELLER2 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 101 WAITE ST #C6 CITY MALDEN DATE 03.31.23 PRICE 344000 Joint Committee on Elder Affairs holds Hearing on strengthening the continuum of care O n Monday, April 10, Representative Kate Lipper-Garabedian (D-Melrose), who is Vice Chair of the Massachusetts Legislature’s Joint Committee on Elder Affairs, which is chaired by Representative Thomas M. Stanley (D-Waltham) and Senator Patricia Jehlen (D-Somerville), joined the Committee for a Public Hearing on proposals to strengthen the continuum of care for older adults. The Committee received testimony on the following bills: • H.648/S.379: An Act to improve quality and oversight of long-term care • H.649/S.380: An Act to improve Massachusetts home care • H.650/S.374: An Act authorizing common sense health services in assisted living “No group has endured more loss and hardship during the pandemic than our seniors and those who care for them,” said Representative Lipper-Garabedian. “The pandemic taught us hard lessons about what is and HEARING | SEE PAGE 19
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