Page 14 THE REVERE ADVOCATE – FRIDAY, APRIL 21, 2023 WHEN Saturday, June 10, 2023 5TH ANNUAL FRANK MASTROCOLA KIWANIS BOCCE TOURNAMENT FOR THE ERSILIA CUP TO BENEFIT EVERETT KIWANIS, SCHOLARSHIPS AND CHARITY Everett Kiwanis is proud to announce the fifth annual Frank Mastrocola Bocce Tournament to be held on Saturday, June 10 at the Methuen Sons of Italy, 459 Merrimack St, Methuen at 8:00 am. First place team wins The Ersilia Cup and a $1000 cash prize. Second place team wins a $450 cash prize. Please join our fun competition and worthy cause! It is a great time with great people! Enter a team of four for $200 or as an individual for $50. No experience needed! We will teach you how to play! Cost includes a souvenir t-shirt and BBQ by Chef Rocco! Various table raffles including a brick of Lottery tickets! Please consider playing, being a sponsor or donating a raffle prize! TIME 8 AM – 5PM WHERE Methuen Sons of Italy 459 Merrimack St Methuen COST $200/team $50/player 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 SPONSORED BY SABATINO INSURANCE Rocco Longo Marlene Zizza everettkiwanis@gmail.com Kiwanis Club of Everett since 1925 CONTACT GREAT RATE ALERT: 4.71% 18-Month CD Only $500 Minimum to open! No Maximum! New Money Only. Grab this offer NOW at any Members Plus branch! memberspluscu.org 781-905-1500 MEDFORD NORWOOD DORCHESTER EVERETT PLYMOUTH *APY = Annual Percentage Yield. Rates effective January 12, 2023, and subject to change without notice. The APY is based on the assumption that dividends will remain on deposit until maturity and that a withdrawal or fee will reduce earnings. $500.00 minimum deposit required to open an MPCU certificate. New money only. Certificates are fixed-rate accounts and will remain in effect until maturity. Fees that may be applicable to deposit accounts can be found on the fee schedule. In the case of CD or IRA, penalty may apply for early withdrawal. NCUA insures up to $250,000; MSIC insures all excess shares and deposits above the federal insurance limit of $250,000. APY* 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 fi rst $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 fi nal 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 nonresident 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, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. For Advertising with Results, call The Advocate Newspapers at 781-286-8500 or Info@advocatenews.net
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