Page 14 THE REVERE ADVOCATE – FRIDAY, MAY 9, 2025 LLC’S TO AVOID THE MASS ESTATE TAX M any people who own real estate in Massachusetts yet establish residency in New Hampshire or Florida, for example, will place their Massachusetts real estate in a Limited Liability Company (LLC). If the LLC membership interest is held directly by an individual or by a living Trust for the benefi t of that individual, whether it be revocable or irrevocable, the New Hampshire or Florida resident, as the case may be, no longer will own real estate in Massachusetts that will be subject to the Massachusetts estate tax. That person will now own an intangible membership interest in an LLC similar to owning common stock in General Motors. As a Florida or New Hampshire resident, such common stock in General Motors would of course not be subject to the Massachusetts estate tax as this person is no longer a Massachusetts resident. If the Massachusetts real estate is rental real estate, if the LLC holding title is a single member LLC, no separate income tax return needs to be fi led for the LLC. The rental income and expenses can be reported on page 1 of Schedule E, Rental Income or Loss, as part of your Form 1040. If there are two or more members of the LLC, then Form 1065, Partnership Income Tax Return would have to be fi led for the LLC. The LLC would then issue a Schedule K-1 to each member of the LLC in order that the net rental income of the LLC be refl ected on page 2 of Schedule E. Keep in mind that if you plan on selling your home in Massachusetts, in order to take advantage of the $250,000 capital gains tax O exclusion for a single person ($500,000 for a married couple fi ling a joint return) with respect to the sale of your principal residence, if you transfer your home into an LLC, you have 3 years to sell your home to take advantage of this capital gains tax exclusion. The reason is you have to own your home and live in your home for at least 2 out of the immediate 5 years prior to the date of sale. Once you transfer your home to the LLC, you won’t technically own it. The LLC will own the home. Another reason to place the Massachusetts real estate for a non-Mass resident into an LLC and then have a Trust own the LLC membership interest, would be to avoid having to probate your estate in the county where the real estate is located. If the LLC membership interest is placed into a revocable or irrevocable Trust, the terms of the Trust would dictate the ultimate disposition of the real estate. No probate proceedings would be necessary. Furthermore, if the LLC interest was placed into an irrevocable trust and more than fi ve years have gone by, the real estate would be protected against any possible future Medicaid lien and would not be considered a countable asset for Medicaid eligibility in the fi rst place. 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. Healey-Driscoll Administration announces $2 million-plus to support agricultural events and Buy Local initiatives Revere Farmers Market to receive $10,000 Special to Th e Advocate n May 1, 2025, the Healey-Driscoll Administration announced over $2 million in grants to support agricultural fairs, farmers markets, and programming to strengthen Buy Local groups in Massachusetts. The Massachusetts Department of Agricultural Resources (MDAR) will manage these grants through three programs: the Agricultural Fairs Infrastructure Grant Program, Farmers Market Sustainability Grant Program, and Buy Local Grant Program. The funds will help improve existing buildings and build new ones at agricultural fairs. The grants will also support strategic planning and consumer marketing eff orts at farmers markets, and outreach programs to get more people involved in the local food system from the 10 regional Buy Local groups in the state. “Agricultural fairs are an important part of Massachusetts’ farming history and traditions,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “These fairs, along with farmers markets, highlight the strength of our agricultural industry. The JOSEPH D. CATALDO, P.C. HEALEY | SEE Page 18 grants will help them stay active and provide valuable cultural, educational, and economic opportunities to our communities.” “For hundreds of years, agricultural fairs have been a way for the public to understand the importance of farming and how a thriving agricultural sector benefits everyone,” said MDAR Commissioner Ashley Randle. “Long before grocery stores and supermarkets, farmers sold their products directly to consumers. Today, Massachusetts is a national leader in doing so, helping farmers remain sustainable by allowing them to set fair prices and capture more of the retail dollar. More than 13% of farm products sold by Massachusetts farmers are sold directly to consumers, which is the highest proportion in the country. Our Buy Local partners also realize the signifi cance that fairs and farmers markets have on the communities they serve so we’re thrilled to continue our longstanding relationship with them so that they can continue promoting these events along with other Buy Local campaigns in their regions.” Law Offices of “ATTORNEYS AND COUNSELORS AT LAW” ESTATE/MEDICAID PLANNING WILLS/TRUSTS/ESTATES INCOME TAX PREPARATION WEALTH MANAGEMENT RETIREMENT PLANNING ELDER LAW 369 Broadway Everett, MA 02149 (617)381-9600 JOSEPH D. CATALDO, CPA, CFP, MST, ESQUIRE. AICPA Personal Financial Specialist Designee Since the fi rst recorded agricultural fair in the nation was held in Pittsfi eld, Mass., in 1811, these events have provided generations of attendees with the opportunity to experience the world of farming. Agricultural fairs offer numerous educational and entertaining off erings, such as livestock demonstrations and skills competitions, which foster a deeper understanding of and appreciation for our agricultural community. The Agricultural Fairs Infrastructure grants will support building upgrades to ensure they are safe and accessible to fairgoers. Farmers markets provide consumers with direct access to farm fresh, healthy and delicious food across the state. Like fairs, they are festive gathering spaces where people can learn more about where their food is grown, cultivate relationships with their local farmers and neighbors and support the local economy. The Farmers Market Sustainability grants will help to bring more customers to these markets and improve sales for farmers.
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