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Page 22 THE MALDEN ADVOCATE–Friday, June 9, 2023 For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net “With skyrocketing incidences of Beacon Hill Roll Call RELOCATING OUT OF MASSACHUSETTS FOR ESTATE TAX SAVINGS ident, 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 FloriI 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 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 resda, 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 master’s degree in taxation. By Bob Katzen GET A FREE SUBSCRIPTION TO MASSTERLIST – Join more than 25,000 people, from movers and shakers to political junkies and interested citizens, who start their weekday morning with MASSterList—the popular newsletter that chronicles news and informed analysis about what’s going on up on Beacon Hill, in Massachusetts politics, policy, media and influence. The stories are drawn from major news organizations as well as specialized publications selected by MASSterlist’s new editor, Erin Tiernan, with help from Matt Murphy. Both are pros, with a wealth of experience, who introduce each article in their own clever way. MASSterlist will be e-mailed to you FREE every Monday through Friday morning and will give you a leg up on what’s happening in the blood sport of Bay State politics. For more information and to get your free subscription, go to: https://lp.constantcontactpages. com/su/aPTLucK THE HOUSE AND SENATE: Beacon Hill Roll Call records local senators’ votes on roll calls from the recent debate on the Senate’s version of a $55.9 billion fiscal 2024 state budget. SEND 90 PERCENT OF CAPITAL GAINS TAX REVENUE ABOVE $1BILLION TO THE RAINY DAY FUND (S 3) Senate 3-36, rejected an amendment that would maintain the current 90/5/5 law under which 90 percent of the capital gains tax collections exceeding $1 billion goes to the Rainy Day Fund, 5 percent to the State Retiree Benefits Trust Fund and 5 percent to the State Retiree Benefits Trust Fund. The amendment would replace a pending 60/20/20 proposal that would send, in fiscal 2024 only, 60 percent of the $1 billion excess to the Rainy Day Fund while sending 20 percent to the State Retiree Benefits Trust Fund and 20 percent to the State Pension Liability Fund. Amendment supporters said it is essential to provide 90 percent to the Rainy Day Fund which helps bail out the state during slow economic times when tax revenues shrink. Sen. Bruce Tarr (R-Gloucester), the sponsor of the amendment, did not respond to repeated requests by Beacon Hill Roll Call asking him to comment on his amendment. Amendment opponents said the Rainy Day Fund is flush with $7 billion and argued these retiree and pension funds are currently underfunded and need some additional money for just one year. Senate Ways and Means Chair Sen. Mike Rodrigues (D-Westport) did not respond to repeated requests by Beacon Hill Roll Call asking him to comment on his opposition to the amendment. (A “Yes” vote is for maintaining the current 90/5/5 formula. A “No” vote is for the 60/20/20 formula.) Sen. Jason Lewis No REAL ESTATE TRANSACTIONS BUYER1 WEIR, BARBARA A BUYER2 SELLER1 VALDEZ INVESTMENTS LLC SELLER2 $1 MILLION FIGHT HUNGER ON COLLEGE CAMPUSES (S 3) Senate 39-0, approved an amendment that would provide $1 million to support a hunger-free campus initiative to address food insecurity at public colleges and junior colleges. "Unfortunately, too many students at our state 2- and 4-year colleges are food insecure," said sponsor Sen. Joan Lovely (D-Salem). "This $1 million will support on-campus programming to address food insecurity, like mobile markets, SNAP enrollment assistance and more. I am grateful that the Senate recognizes the critical importance of addressing this issue. No one should have to learn on an empty stomach." (A “Yes” vote is for the $1 million.) Sen. Jason Lewis Yes $300,000 FOR DRINK SPIKING CRISIS (S 3) Senate 39-0, approved an amendment that would provide $300,000 for the state to develop, research and recommend strategies to address the rising incidence of reported drink spiking in the Bay State. The funds could also be used for a public awareness campaign about drink spiking and the bulk purchase of drink spiking test kits to be distributed at bars, restaurants and other nightlife establishments across the state. Drink spiking is when a person adds alcohol or other drugs to someone’s drink without their knowledge. This can lead to many things including sexual assault or the intent to hurt or steal from the person. “Over the last year alone the commonwealth has seen an alarming increase in the number of reported drink spiking incidents at bars, nightclubs, concert venues and even house parties across the commonwealth,” said sponsor Sen. Paul Feeney (D-Foxborough). “These incidents are all too common and we’ve seen countless warnings from law enforcement: ‘use the buddy system, cover your drink and don’t leave your drink unattended.’ Yet reports of these incidents persist and the commonwealth’s response is still catching up to the onslaught of these reports.” (A “Yes” vote is for the $300,000.) Sen. Jason Lewis Yes ADDITIONAL $400,000 FOR THE PREVENTION OF HATE CRIMES (S 3) Senate 39-0, approved an amendment that would increase funding by $400,000 (from $400,000 to $800,000) for grants to schools for the prevention of hate crimes and incidences of bias in public schools. The grants would be used for education, professional development, prevention or community outreach, prioritizing schools that have experienced hate crimes or incidences of bias within the last two years. ALSO UP ON BEACON HILL PURCHASE ALCOHOL (H 369) – The Consumer Protection and Professional Licensure Committee held a hearing on a bill that would allow liquor and retail store clerks to accept a valid photographic, non-duplicate motor vehicle license issued by other states as a valid form of ID to purchase liquor in the Bay State. “The commonwealth invites people from across the country to our sporting and live events, as well as to vacation and tour our historical sites,” said sponsor Rep. Paul McMurtry (D-Dedham). “It only makes sense that we allow our licensees to be able to serve these individuals using their state identification. In addition, this will give our businesses and restaurants additional sales and help them recover from losses during the pandemic.” HIGHER EDUCATION HEARING – The Higher Education Committee held a hearing on several bills including: PROTECT STUDENTS STUDYING ABROAD (S 820) – Would require high schools and colleges with programs that allow students to study abroad to prioritize health, safety and security in program development, implementation and management of study abroad programs. These programs would be required to conduct risk assessments for different portions of the program; establish protocols in case of an emergency; and provide statistics on any assaults, injuries or deaths that occur in these programs. Parents would be able to access this information to better understand whether a program is right for their child. “Study abroad programs provide valuable lessons and lifelong memories for students across our state, but we must ensure schools are responsible and care for our children’s safety,” said sponsor Sen. Sal DiDomenico (D-Everett). “By establishing safety and transparency protocols, I am confident that passing this legislation will help protect Massachusetts students learning abroad.” REQUIRE NARCAN IN COLLEGE DORMS AND HOUSING (S 849) – Would require all state universities that have dormitories or other housing for students to have Narcan or similar opioid antagonists in each college-operated housing building. Narcan is an emergency treatment used for the complete or partial reversal of opioid overdose. The bill would also require that all resident assistants (Ras) employed by the school be trained in the administration of Narcan. "Massachusetts set a new record high for overdose deaths in 2021, with 2,290 lives tragically lost,” said sponsor Sen. John Velis (D-Westfield). “Opioid antagonists like Narcan continue to be our best tool to reverse overdosCopyrighted 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 131 FOREST ST CITY MALDEN DATE 05.18.23 PRICE 750000 hate crimes and bias against people of color, LGBTQ+ individuals, Jewish people and other minority groups, these programs are now more important than ever,” said sponsor Sen. Mike Moore (D-Millbury). “Addressing misinformed beliefs during children and teens’ formative years is the best strategy for preventing discriminatory behavior down the road, Hate has no home here in Massachusetts – I’m pleased to have received my colleagues’ support on this critical funding.” (A “Yes” vote is for the additional $400,000.) Sen. Jason Lewis Yes

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