Page 12 THE REVERE ADVOCATE – FRIDAY, DECEMBER 2, 2022 FOOTBALL | FROM Page 1 sion try and trailed by 12 with over a quarter to play. Later, a Winthrop fumble on a completed pass recovered by Revere's Abbas Attoui inside the Patriots' fi ve-yard line seemed to stop a Vikings' drive. However, the pass was ruled incomplete. Revere head coach Lou Cicatelli told the press this week it was a play that could have changed the complexion of the game. It was not to be as the hosts ended up scoring on the drive and adding the extra point to account for the fi - nal margin. Winthrop established a 5832 overall lead in the Thanksgiving series following this year's triumph. There have been three ties. Cicatelli credited the Vikings for being the more physical team. "They wanted it more and they got it," he said. "Defensively, we didn't play very well." A decrease in manpower impacted Revere's season. The Patriots lost key players such as Max Doucette, receiver Domenic Boudreau and running back Davi Barreto to injury during the campaign. Over the fi - nal month, that factor seemed to catch up to the Patriots, who fi nished with a 4-7 record despite earning a berth in the Div. 3 state playoff tournament. Cicatelli acknowledged that injuries played a role in the season's outcome but there are things to build on for 2023. "We had a lot of starters miss games. It was a tough year," he said. "The record is disappointing but we made the playoff s, and that was one of our goals." The Greater Boston League announced this year's all-star team and four Revere players were chosen for the squad. They are Boudreau, Elasri, Jason Shosho and Maykin Fuentes Gonzalez. COST BASIS OF INHERITED PROPERTY T he cost basis of property acquired from a decePats QB Carlos Rizzo Jr. attempts a pass with a Viking defender looking to block his pass in Turkey Day action. Patriot Senior Christopher Cassidy takes a moment to refl ect on the fi eld after the Patriots loss to Winthrop after Thursday’s Thanksgiving Day matchup. dent is equal to the fair market value of such property at the time of the decedent’s death. This is pursuant to Internal Revenue Code (IRC) Section 1014(a)(1). This is referred to as the step up in cost basis. If real estate valued at $500,000 is devised pursuant to an individual’s Last Will and Testament or pursuant to the terms of a living Trust, the recipient of this real estate receives the benefi t of a cost basis equal to the $500,000. It’s a new starting point. It’s as if the benefi - ciary of the Will or Trust paid $500,000 for the real estate. If the real estate is sold shortly thereafter for $500,000, no capital gains tax will have to be paid. If the property were sold two years later for $600,000, the capital gain to be reported would only be $100,000. It is therefore very imporRevere Co-Captain Sami Elasri make a last-second leap for yardage on Thursday. Patriot Co-Captain Davi Baretto attempts to get away from a Winthrop defender. tant to take into consideration the value of this step up in cost basis when creating an estate plan. Capital gains taxes can be as high as 23.8% federal and 5% Mass. With the new Millionaires tax in Massachusetts, some capital gains could be taxed at an additional 4% rate. Once taxable income exceeds $1,000,000, the excess income is taxed at a rate of 9%. The capital gain could actually push you over the $1,000,000 of income. Consequently, it is even more important to take advantage of the step up in cost basis in order to eliminate or minimize the actual capital gain itself. If appreciated real estate or stocks are simply given to your children outright, the cost basis in the hands of your children would be your cost basis. This is referred to as a carryover basis. You would look to what you originally paid for the real estate or stock, improvements to the real estate, depreciation taken if rental property, etc., in order to determine cost basis. Outright gifts like this do not make much sense in the vast majority of cases. It would be better to place the property in a living Trust in order to avoid probate, obtain the step up in cost basis, provide for estate tax savings and possibly protect against a nursing home if that is one of the objectives. Generally, the capital gains tax savings to the children upon a future sale of appreciated real estate or stock far outweighs the negative of having to pay a Massachusetts estate tax due to the real estate and stock being included in the decedent’s taxable estate. As an example, a $5,500,000 taxable estate consisting of appreciated real estate and stock would cost approximately $460,000 in Massachusetts estate taxes. If the original cost basis of the real estate was only $500,000 because the property was purchased 50 years ago and/or fully depreciated (if rental property), the capital gains tax savings would approximate $1.425million. The net savings to the children would be $965,000. There would be no federal estate tax as the current federal exemption is over $12million. Keep in mind that under IRC Section 1223(9), the holding period for assets received from a decedent shall be considered to be more than one year, even though the assets may have been sold by the benefi ciary within one year from the date of death. Pursuant to IRC Section 1223(2), the holding period of the person making an outright gift plus the holding period of the recipient of the gift is added together in order to determine if a short-term (less than one year) or longterm (more than one year) capital gain would be recognized upon a subsequent sale.. 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. Meet the Revere High School Football Cheerleaders
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