Page 16 THE REVERE ADVOCATE – FRIDAY, OCTOBER 27, 2023 ELECTION | FROM Page 2 though she is not responsible for many of these issues, she still makes herself available and will do her best to try to answer questions that go beyond her scope and will fi ght for a cause and help you out the best she can. She was also an educator. Teachers are role models for students. They are enthusiastic, seek to solve problems and put their students fi rst. They stand up for their students and want the best for them. This leadership quality can go beyond a classroom. One example is that Angela testifi ed in front of the Joint Committee on Environmental and Natural Resources at the State House calling on the shutdown of Wheelabrator and holding them accountable for the endless pollution and excessive emissions that are released in the air that affect many of us. I currently do not see that type of leadership in Ward 5. In fact, I’m not sure I ever did. We need this. We need folks in leadership roles who care about us! Those that know me know that I love politics and I take a vote very seriously. I won’t vote for someone out of obligation 8 Norwood St. Everett (617) 387-9810 Open Daily 4:00 PM Closed Sunday Starting Monday, September 11... We’re back to serving our Full Menu featuring all your favorite Italian Specialties and American Classics! Catch ALL The Live Sports Action On Our Large Screen TV’s www.eight10barandgrille.com ~ Home of the Week ~ SAUGUS...Quaint 5 room, 2 bedroom, 1 1/2 bath Ranch situated on a private, dead-end street. Eat-in kitchen, oak cabinets, dining room with corner built-in hutch, spacious living room, 2 good-size bedrooms, with half bath, walkout to private back yard, roof approximately 7 years old. A little TLC needed to make this gem shine. View the interior of this home right on your smartphone. at 781-286-8500 or Info@advocatenews.net call he Adv cate Ne spapers For Advertising with Results, call The Advocate Newspapers or promise. It doesn’t matter if you are a neighbor or someone I am close to. It doesn’t matter your race, ethnicity, or gender. I vote based on who can make a diff erence and who can bring change. It has been such an honor being part of Team Angela. For many years I’ve kept to myself. I would say a quick hello to folks walking by in my neighborhood but never fully engaged. Since Angela, I’ve really come out of my shell and have come into my own. I now attend neighborhood events and volunteer. I’m also stepping out of my comfort zone. I’ve met a lot of local politicians, attended city hall events, and engage in open conversations about the city that I love so much. I now watch the City Council meetings and educate myself on the happenings within this city that I love so much. I’ve become hyper aware of the current council and city leadership, and who is here for the people versus themselves. Being part of Team Angela has been an amazing experience. Whether I’m sign holding or walking the streets with her and handing out fl yers, I’ve met so many amazing people along the way. People I would now consider friends. I strongly believe in what Angela stands for. For the fi rst time, I am now excited about the possibilities in my ward. Please go over to Committee to Elect Angela Guarino-Sawaya for Ward 5 Revere City Council and Angela Guarino Sawaya. Reach out to her or any of us. You will not be disappointed. We need change and we need it now. Thank you. Signed, Toni Depaolis Revere, MA PASSIVE ACTIVITY LOSSES T he passive activity loss rules limit the ability of taxpayers to offset salaries, interest income, dividend income, self-employment income, passthrough income generated from active activities such as limited liability companies and S Corporations, lottery winnings, capital gain income, royalty income, pension income, IRA distributions and social security income with losses from passive activities, which are trades or businesses in which the taxpayer does not materially participate. Under the passive activity loss provisions, a taxpayer can only off set passive activity losses against passive activity income. Any disallowed passive activity loss can be carried forward to the next calendar year in order to be off - set against passive activity income that might be applicable for that next calendar year. In the event there is no future passive activity income available to off set the passive activity losses against, if the passive activity is subsequently sold, all unused passive activity losses can then be deducted in full in the year of sale. Tax credits from a passive activity can only be utilized to off - set income taxes associated with that passive activity. Any excess tax credits must then be carried forward to be off set against future income taxes associated with future passive activity income. The passive activity loss rules also apply to rental real estate. Taxpayers are allowed to deduct up to $25,000 per year in rental losses to be off set against all other income such as wages, interest income, dividend income, capital gain income, etc. The taxpayer must materially participate in the rental real estate activity. The deduction begins to be phased out once modifi ed adjusted gross income (MAGI) reaches $100,000. The deduction is completely phased out once MAGI reaches $150,000. These thresholds apply for both single taxpayers and married fi ling joint taxpayers. IRS Form 8582 is used to report passive activity income and losses. Any rental losses in excess of $25,000 will be carried over to future years. For each piece of rental real estate that you own, you must keep track of the unused rental losses that are carried over each year. If one of the rental properties is later sold, any unallowed rental losses will be fully deductible in the year of sale. Some taxpayers qualify as a real estate professional. In order to qualify, the taxpayer must work at least 750 hours per year in a real estate trade or business and more than 50% of the taxpayer’s total hours worked during the year must be in a real estate trade or business. There is no limit on the amount of rental loss a real estate professional can deduct on his or her tax return unless the taxpayer is subject to the excess business loss limitations as set forth in the Tax Cuts and Jobs Act of 2017. Material participation in rental real estate activities is generally achieved by electing to aggregate all of your rental activities as one activity and demonstrating that you have worked at least 500 hours during the year in this one activity. It is often very confusing for taxpayers when they receive K-1 forms from real estate investment trusts and limited liability companies reporting losses. The K-1 forms may report that the partner is a limited partner, thereby indicating no active participation. This would result in the interest being deemed a passive activity. Those losses can only be off set against other passive income. If there is no other passive income, the losses cannot be off set against any non-passive income as mentioned above. As a further note, if that same passive activity reports a large capital gain on the K-1 form as well as a rental real estate loss or ordinary business loss, the rental real estate loss and ordinary business loss cannot be off set against the capital gain, as the partner simply does not actively participate in the entity, and the capital gain is not considered passive income. 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.
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