Page 10 THE REVERE ADVOCATE – FRIDAY, DECEMBER 9, 2022 Roller World offers reward for information that leads to identify vandal who damaged door R oller World, Inc. Owner and President Gerald T. Breen said he will off er a reward for information that leads to the identifi cation of the person or people responsible for vandalizing his front door on Saturday night. “They broke my front door OPIOID | FROM Page 1 Fund at their last meeting. “It just makes sense to do this,” said Councillor-at-Large Dan Rizzo. “The funding is there.” Throughout the country, Opioid overdose deaths have increased by 28 percent over the past year with Fentanyl contributing to the increase. Revere has lost 20 to 21 people to overdoses over the past couple of years. Federal investigators recently announced the arrest of four men transporting four kilograms of Fentanyl at the Northand it will cost us around $1,000 to replace it,” Breen said yesterday of his Rte. 1 south roller rink in Saugus. He said the door was damaged just before closing last Saturday (Dec. 3). Saugus Police said the door was broken from the inside. gate Plaza. Just over $250,000 has been transferred to the new trust fund from the city’s general fund. By establishing the trust fund, the council ensured the money will be spent on the use for which it was intended. Revere has several Opioid addiction treatment centers, but now more can be done to get ahead of the problem. Governor Elect Maura Healey is continuing to legally pursue opioid makers and distributors and hold them legally and fi nancially accountable for their role in drug addiction and death. GREAT RATE ALERT: 4.39% Police have no suspects in connection with the incident. But Breen said he plans to review security film which may show the suspects who damaged the door. “ I think it’s kids and we want to identify them so we can put a stop to this,” he said. She recently announced a proposed $3 billion nationwide settlement reached with Walmart, over allegations that the company contributed to the opioid crisis by failing to properly oversee the dispensing of opioids at its stores. “Companies that contributed to the opioid epidemic need to repair the harm they caused,” said Healey. “That means paying for the treatment, recovery, and support services that families need, and changing business practices to make sure a crisis like this never happens again.” T COST BASIS OF INHERITED PROPERTY he cost basis of property acquired from a decedent 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 imporAPY* 18-Month CD Only $500 Minimum to open! No Maximum! 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 December 1, 2022 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. 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. 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.
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