THE SAUGUS ADVOCATE – FriDAy, FEbrUAry 22, 2024 Page 17 Tips for purchasing furniture online O nly shop with reputable retailers. Research a retailer’s page before deciding to do business with them. Reputable sellers provide information about their company and always have valid contact information. Look for company reviews online; for example, on BBB.org, shoppers can find out if an online retailer is BBB Accredited, read consumer complaints and reviews. Understand the store’s return and refund policy. Return shipping for heavy items, such as furniture, can get costly. Some retailers may have unique restrictions for delivery and returns because of the coronavirus pandemic. Before placing an order, read carefully or call the retailer directly to find out upfront if a retailer has a return policy, if refunds are available, how refunds are issued, what the return process is, who pays for return shipping, and whether or not a restocking fee is charged. This information will often help decide whether or not you will complete the order. Get to know the delivery options. Typically, furniture retailers offer three kinds of shipping, and each one may have a different cost. Front door delivery: the packaged product will be shipped to your front door and no further. Inside delivery: the delivery person will take the packaged furniture into your home, sometimes into the room of your choice. White glove delivery: the delivery person will take the packaged box to the room of your choice, unbox it and assemble it if necessary. They will also clean up any mess from the packaging and take it with them. Ask before placing the order if these delivery options are available, as some retailers have changed to curbside or simply front door delivery service to avoid contact delivery. Measure your space - will it fit through the door? Be extra conscientious when measuring the space where the new furniture will go. A small mistake when taking measurements can mean the difference between the new sofa fitting comfortably in the living room or not fitting through the doorway and down the hall! Make sure to measure doorways, ceiling heights, and any hallway space (including banisters) the furniture must get through to reach its final destination. Choose the color carefully. As they appear on a computer screen, furniture colors can be significantly different from how they look in real life. Look at furniture images on different devices to get a better feel for the color. Consumer reviews can be helpful, too, as many people will comment if the furniture is darker or lighter than it appears online. Read several reviews. When finding the ideal piece or furniture, read as many consumer reviews as possible, keeping a critical eye out for comments about the quality of the furniture and the experience with the retailer. Use these for reference before making a final purchasing decision. Come watch Polymnia Choral Society tell the story of Anne Frank’s diary, life and legacy F or over 70 years, Polymnia Choral Society has been delivering great performances to acknowledge and honor the important times in our lives. On Saturday, March 9, 2024, at 7:30 p.m., Polymnia will be performing “Annelies” by James Whitbourn. It’s a powerful and dramatic work in 14 movements that details the life of Anne Frank during the time she was in hiding during World War II. Also included in the piece are excerpts from her diary. Come experience Polymnia Choral Society’s performance of songs inspired by Anne Frank’s writings, life and legacy. In addition, educational materials regarding the Holocaust, Anne Frank’s life and her diary’s influence will be available for the audience to learn more about these topics. Due to the seriousness of this concert’s subject matter, it would be appropriate for adults and children aged 12 and up to attend. This concert will be held at the Melrose Performing Arts Center at Melrose Veterans Memorial Middle School (350 Lynn Fells Pkwy., Melrose, Mass.). Doors open at 7:00 p.m. Tickets are $25 for adults, $20 for seniors and $15 for students. To purchase tickets for this concert, visit https://polymnia. org/about-our-upcoming-season/ or Miter Biter (479 Main St., Melrose) or call 617-6335006. For more information about Polymnia: www. polymnia.org/about Ask questions right up until making a purchasing decision. Reputable furniture companies will happily answer any questions about a specific product until the button to purchase it is clicked. When in doubt, contact the company directly. For example, maybe it’s essential to know whether the feet of a couch unscrew so it will fit through a tight doorway. Many companies are also willing to send fabric swatches for a reasonable fee – a good idea if there is a specific color or texture preference to match in the room. Do a price compari - son. Some pieces of furniture are available from multiple retailers, so always compare prices before getting the best deal. Don’t forget to factor in shipping fees and taxes when comparing prices. For store financing, rent-toown, and layaway plans, carefully read the fine print. Since furniture can get expensive, many retailers offer store financing, layaway plans, and rent-to-own options. If you are considering one option, carefully read the financing plan. How much interest is charged? How long does the payment plan last? How many payments over how many months or years will it last? Is there an fee to pay the balance in full? Get the answers to all of these questions before signing a finance agreement. Inspect furniture upon delivery. Before signing any delivery paperwork, inspect the furniture. If it is damaged or missing pieces, you don’t have to accept it. When a delivery is refused because of damage, you will no longer be responsible for payment. For more information Learn more about safe online shopping by reading the BBB Tip: Smart Shopping Online tip. Read the FTC’s advice on renting to own. When researching a furniture retailer, look to businesses who adhere to the BBB Standards for Trust. Read more about BBB’s Accreditation Standards. CAPITAL GAINS TAX EXCLUSION AND IRREVOCABLE TRUSTS P eople often question if they transfer their principal residence into an irrevocable trust, will they still be entitled to the capital gains tax exclusion upon a subsequent sale, pursuant to Internal Revenue Code Section 121. The answer is yes. A married couple filing a joint income tax return has the right to exclude up to $500,000 of capital gain on the sale of their principal residence. The limit is $250,000 for a single taxpayer. The capital gain is simply the difference between the selling price and the cost basis of the home. The cost basis of the home is determined by adding the original purchase price, plus capital improvements over theyears as well as expenses associated with selling the home such as a broker’s commission, tax stamps, legal fees, fixing up expenses and any other expenses associated with the sale. In some cases, you also have the benefit of using the date of death value as part of the cost basis if one of the spouses were to die. For example, if husband and wife purchased a home 25 years ago for $250,000 and the husband died 10 years ago when the home’s value was $350,000, upon a subsequent sale of the home by the wife, the cost basis is computed as follows (also assume capital improvements prior to husband’s death were $30,000 and selling expense were $25,000): ½ of the $250,000 purchase price is allocated to wife, or $125,000. She only owned 50% of the home. ½ of the fair market value of home at the time of husband’s death is $175,000 ($350,000 x ½, since the husband only had a 50% interest in the home at the time of his death). ½ of the capital improvements attributed to wife, or $15,000. Selling expenses of $25,000. In this example, the cost basis would be $340,000 ($125,000 + $175,000 + $15,000 + $25,000). If the home were sold for $575,000, the capital gain would be $235,000. The entire gain would be non-taxable. Since the husband passed away, one half of the fair market value of the home at thetime of his death enters into the calculation of the wife’s cost basis. This is referred to as the “step-up in cost basis”. For the $500,000 capital gains tax exclusion to apply, the married couple must have lived in the home for 2 out of the previous 5 years prior to the actual sale. Since the irrevocable income-only trust is designed to qualify under the “grantor-type” trust rules, the law treats the Settlors/Donors/Grantors of the trust as the owners for tax purposes. What makes the trust a grantor-type trust for capital gains tax purposes is the reserved right in the Settlors to direct where the trust principal and/or income of the trust can go during the Settlors’ lifetime. In accordance with Internal Revenue Code Section 674(a), this retained power is what makes the trust a grantor-type trust for capital gains tax purposes, thereby preserving the capital gains tax exclusion. This is referred to as a lifetime special power of appointment. Most often, a lifetime special power of appointment and a testamentary special power of appointment provision is included in an irrevocable Trust. The testamentary special power of appointment is designed to allow the Settlor the ability to change the ultimate beneficiary of the Trust by exercising that power of appointment via the Settlor’s Last Will and Testament being submitted to a probate court upon death. A power of appointment is essentially a power to redirect where the Trust principal will go. This also results in an incomplete gift for gift tax purposes. .Joseph D. Cataldo is an estate planning/elder law attorney,Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation.
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