13

THE SAUGUS ADVOCATE – FRIDAY, MAY 7, 2021 Page 13 OBITUARIES Anthony A. Struzziero “YOUR FINANCIAL FOCUS” JOSEPH D. CATALDO STEP-UP IN BASIS PROPOSED TAX LAW CHANGE P Of Saugus, formerly of East Boston, died on April 30 at 1. On May 7, 1954, construction began on what bridge that was the then longest suspension bridge in the world – connecting the upper and lower peninsulas of Michigan? 2. What is the only penguin native to north of the equator (on islands)? 3. Ciabatta was first made in what decade: 1880’s, 1950’s or 1980’s? 4. On May 8, 2010, Betty White guest hosted what comedy show (which won her an Emmy) due to backing by Facebook fans? 5. What is the alter ego of Anakin Skywalker? 6. Which U.S. state produces the most fresh-cut flowers? 7. May 9 is Mother’s Day; what author of “The Battle Hymn of the Republic” organized Mother’s Day observances in NYC and Boston in the 1870’s? 8. In 2017 it was announced that what BBC sci-fic series would have its 13th doctor protagonist – the first female one? 9. The “Waltz of the Flowers” is from what work composed by Tchaikovsky? 10. On May 10, 1879, in what N.E. city was the first U.S. national archaeological society founded? 11. What beverage did the Puritans on the Mayflower mostly consume? 12. How are Thumper, Flower and Faline similar? 13. On May 11, 1995, it was confirmed that what virus was discovered in Zaire? 14. What Black female recorded “Hound Dog,” “Ball and Chain” and “Wade in the Water”? 15. Zōri are the precursors of flip-flops and are native to what country? 16. How are Bag End, Wuthering Heights and Manderley similar? 17. On May 12, 1820, what nurse was born who was known as “The Lady With The Lamp”? 18. How are March Hare, Hatter and Dormouse similar? 19. Is rhubarb a fruit? 20. On May 13, 1883, who was born who devised the Pap smear test? ANSWERS the Melrose-Wakefield Hospital. He was the former Belmonte Jr. High School Principal and husband of the late Catherine (DeAngelis) Struzziero. Mr. Stuzziero was the loving father of Judith Rotz & her husband Richard of Saugus, Karen Struzziero of FL, Cathryn Kelly & her husband Thomas of Holliston & Thomas Struzziero of Saugus, cherished grandfather; Timothy & his wife Sarah, Jillian & her husband Douglas, Katerina, Cassandra, Sophia & Thomas, great grandchildren; Braydon, Charlie, Caitlin, Jayden & Gianna. Mr. Struzziero is also survived by his companion Carole Drake of Saugus. He was the brother of the late Ernest and Alexander Struzziero and the late Mary Turino. Also survived by many nieces & nephews. In lieu of flowers donations in his memory may be made to St. Jude’s Research Hospital at stjude.org. Entombment Holy Cross Mausoleum. Late WWII U.S. Navy veteran. BUDGET | FROM PAGE 12 mendations and best practices for responses to mental health emergencies and creates a new program to approve rural growth funds that would invest in small businesses in rural communities. It also eliminates the sunset on the Film Tax Credit and increases the Conservation Land Tax Credit. Speaker Mariano and the House Ways & Means Committee introduced their FY22 budget on April 14, 2021, following a review of the Governor’s proposal and a series of budget hearings. After three days of debate and over a thousand proposed amendments, the budget was passed by the House of Representatives, 160-0, and it now goes to the Senate for consideration. resident Biden’s proposed repeal of the step-up in basis provisions of Internal Revenue Code Section 1014, if passed by Congress, will create a sweeping change in the tax code that will affect millions of American taxpayers. The step-up in tax basis provisions provide for the fair market value of all assets owned or constructively owned by the taxpayer at the time of his or her death to become the new “cost basis” going forward in the hands of the recipients of those assets (e.g. surviving spouse, children, relatives, etc.) pursuant to the terms of the Last Will and Testament transfer on death account, or a Living Trust, for example. As long as the assets are includible in the taxable estate of the decedent, regardless of whether or not a federal or Massachusetts estate tax has to be paid, the step-up in basis is achieved. This provision allows for a single-family home originally purchased for $75,000 to be left to one’s children at the time of death of a parent, while creating a new cost basis in the hands of the children equal to the fair market value at the time of death. If, for example, at the time of death, the fair market value of the home is $500,000, that will be the new cost basis. The children would be able to sell the home soon thereafter for $500,000 without having to pay any capital gains tax. One of the original purposes of the legislation was to avoid the unmanageable task of requiring the children to attempt to compute the cost basis of the home by going back 50 or more years to determine the original purchase price, capital improvements, closing costs, refinance costs, etc. By establishing the fair market value as the starting point after the date of death, all of those issues are avoided. No need for canceled checks, settlement statements, credit card statements, invoices, etc. No need to defend oneself in an IRS audit that most likely could not be won. Therefore, in the above example, if the Biden administration proposal is passed, if one assumes there were $75,000 in improvements over the years, there would be a $350,000 capital gain. If there were two children, the federal capital gains tax would be approximately $26,250 each and the Massachusetts capital gains tax would be $8,750 each, for a total of $70,000. This is certainly an increase in taxes to be paid by a lot of middle-class taxpayers. Millions of middle-class American taxpayers currently do not have to be concerned about such a capital gains tax in these circumstances. If the tax law is changed, it will be unavoidable. What’s important is not so much whether or not you agree or disagree with abolishing the step-up in basis provisions of the tax code, but whether or not you realize this will affect just about everybody, not just the rich and famous. This will also affect appreciated stock that a mother or father may leave to his or her children. Even a $100,000 stock portfolio built up over years of investing may have a cost basis of only $25,000. Without the benefit of the step-up in cost basis provisions, the children, upon a later sale of the stock, will realize a $75,000 capital gain and incur a $15,000 combined federal and Mass capital gains tax. The repeal of this long-standing provision will have profound implications for millions of taxpayers, not just the wealthy. Such a repeal would also create a disaster from a taxpayer compliance standpoint as well as from an IRS enforcement standpoint. Such a new tax law would amount to nothing less than a middle-class tax hike, and this would have nothing to do with the proposed increase in the capital gains tax rate for those who earn more than $400,000 per year. 1. The Mackinac Bridge 2. The Galápagos penguin 3. 1980’s 4. “Saturday Night Live” 5. Darth Vader 6. California 7. Julia Ward Howe 8. “Doctor Who” 9. “The Nutcracker” 10. Boston (the Archaeological Institute of America) 11. Beer 12. Bambi’s friends in the 1942 animated film “Bambi” 13. Ebola 14. Big Mama Thornton 15. Japan 16. They are fictional houses in British novels (“The Hobbit, “Wuthering Heights” and “Rebecca,” respectively) 17. Florence Nightingale 18. They attended the March Hare’s tea party in the novel “Alice’s Adventures in Wonderland.” 19. No; it is a member of the buckwheat plant family. 20. George Papanicolaou

14 Publizr Home