Page 18 For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net THE MALDEN ADVOCATE–Friday, June 16, 2023 MUSINGS | FROM PAGE 3 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. in that accent! Forgetaboutit! We loved you very much, Jimmy. Everybody did. Edgeworth grieves for the extra-large hole that you leave in our lives. It is with extremely heavy heart that I share the loss of the last of the “stand-up guys” – often imitated, never duplicated – Jimmy the “Prince of Pearl Street” Palermo. We’ll meet again someday, big guy. We’ll have a cold one and maybe you can make us one of those extra-long sausage subs you were so famous for at 3 in the morning. Rest in peace, friend. • Speaking of the Memorial Day celebration at Forestdale Cemetery... New memorials to honor veterans of the conflicts in Iraq and Afghanistan were unveiled. One, fittingly, portrayed the sacrifice and service that women have bravely contributed going back to the Revolutionary War. ’Bout time! Good job, Malden! Also unveiled was a new memorial in honor of Lance Corporal Edward M. Garvin, who was K.I.A. in Iraq on October 4, 2006. Edward’s sister and son were in attendance, making this day very special. • Spotted at the Forestdale Cemetery that morning was an abundance of birdlife but not one coyote sighting! Thank goodness. As Peter Falk’s iconic TV character Columbo would say, “Just one more thing, sir” – passage revisited and reworked, Why not Malden Square? Davis Square in Somerville was not always “home of the hipsters.” Central Square wasn’t always the coolest place in Cambridge to shop for Doc Martens and rare old blues records, or to drink perfectly poured pints. Have you driven through Charlestown lately? Not the Charlestown we knew growing up (right, Kevin Benner?)! How ’bout the Seaport District? SCHOLARSHIP | FROM PAGE 12 “We are thrilled to offer these scholarships for our 2023 Summer Enrichment Camp,” said CCC Executive Director Mei Hung. “Our aim is to ensure that talented and motivated students, regardless of their financial circumstances, have the opportunity to engage in a transformative learning experience.” If you are interested in this REAL ESTATE TRANSACTIONS BUYER1 SCHEUMANN, JESSE ZIA, MOHAMMAD S BUYER2 SCHEUMANN, MERISSA BANERJEE, SREEJA SELLER1 HIN, SO V RJJ PROPERTIES LLC SELLER2 Point being, if these once neglected and shabby neighborhoods can make that transformation, I can certainly envision Malden (Square) continuing its upward trajectory, swaggering its way to fame and fortune! It’s actually happening in real time. Right now! With “The Beast That Ate Pleasant Street” now part of our prehistoric past, the whole downtown area has started to bloom! New retail shops and restaurants have opened their doors and added a dynamic never before seen in Malden. Barney Kahn would be gobsmacked at 2023 Malden Square (ask Barbara Tolstrup or Arthur who Barney was)! Add to the mix our ever-improving school system, the multimillion dollar infrastructure betterment to the downtown streetscape (thank you, Senator Ed Markey and our state delegation), the “Dine in Malden, Taste the World” campaign that caught fire and was the envy of all our neighbors, and Mayor (Christenson’s) at all times forward-thinking administration – and we got a “perfect storm” unfolding. Let’s give the downtown merchants another huge “welcome back” this spring/summer. Drink, eat, shop locally and get your merry on in good old Malden Square! Future home of the hipsters!? Postscript 1: With that said... from its humble beginnings Malden has been a working-class city. Residents (for the most part) with common sense; they worked hard, fought hard and (at times) enjoyed life (too) hard. Our roots – blue collar; that is why an overwhelming number of us vote so pragmatically when choosing elected officials. That is why we keep sending the likes of Ed Markey, Jason Lewis, Katherine Clark and Steve Ultrino back to the hill. Politicians who stand up for and give a voice to the proletariat (not the hardcore punk band out of Boston in the early opportunity, please fill out and send your application by June 16, 2023, to info@ChineseCultureConnection.org. An evaluation of financial need will be conducted as part of the selection process to ensure a fair and equitable distribution of funds. Successful applicants will receive notification of their acceptance and scholarship award by June 21, 2023. About the Chinese Cul1980’s – insert smiley face). We have no tolerance for our elected officials’ grandstanding. We recognize a fraud and those who are self-aggrandizing from Robinson’s News to Oak Grove Variety to China Garden. We in Malden are fortunate to have been led through the years by such capable and trustworthy mayors, such as Gary Christenson, Richie Howard and before that (the best of them all) Ed Lucey. These days Craig Spadafora, Amanda Linehan, Carey McDonald, Peg Crowe, Chris Simonelli, Steve Winslow – to name but a few – have stepped up “bigly” and have rewarded Malden with hard work and dedication to the electorate. This year might see some changes in the political landscape. New faces have emerged, which is always a good thing – fresh perspectives and (hopefully) innovative new ideas can only mean good things for us who have called Malden home, both literally and figuratively. That is why it is important for us to continue this tradition and only elect committed officials whose sole purpose is to serve the interests of Maldonians. Peter, gingerly stepping off his soapbox... Postscript 2: On June 2, I lit the Yahrzeit Memorial Candle for my grandfather Harry. As my father Solomon had done before me. A simple request to his children to keep the tradition alive. Fulfilled. Postscript 3: Please take note: “The Beast That Ate Pleasant Street” is not to be confused with “The Beast That Ate Maplewood Square.” Insert smiley face, George (Warren)? —Peter is a long-time Malden resident and a regular contributor to the Malden Advocate. He can be reached at PeteL39@aol.com for comments, compliments or criticisms. ture Connection: Through diverse educational programs, cross-cultural dialogues, and special events, CCC (https:// www.chinesecultureconnection.org/) empowers Chinese immigrants and Chinese descendants of the Greater Boston area to appreciate and retain their heritage, develop bicultural fluency and enrich others with a deeper understanding of Chinese language and culture. 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 459 MEDFORD ST 14 PLAYSTEAD RD CITY MALDEN MALDEN DATE 05.25.23 05.26.23 PRICE 770000 835000
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