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Page 14 THE SAUGUS ADVOCATE – FriDAy, OCTObEr 27, 2023 ASKS | FROM PAGE 13 for future generations. Corinne R. Riley: My environmental vision for Saugus is simple and practical. I would like the environment to be clean and safe, with residents, businesses, and our local and state governments doing their part. To achieve those goals, I would focus on practical measures within our control. Specifically: • Promote more consistent enforcement of our bylaws regarding dumpsters, which are too often left open and visible from abutting properties and public streets. • Promote broader outreach informing residents about responsible disposal of car tires, items containing mercury like fluorescent bulbs, thermostats, and thermometers at the CHARM. • Promote broader outreach informing residents about Household Hazardous Waste Collection for environmentally responsible disposal of latex paint, household chemicals, motor oil, antifreeze, car batteries, etc. • Personally reduce waste by participating in social media gifting groups like Saugus Up For Grabs. Explore options to offset the cost of covered recycling bins to reduce the amount of windblown trash on our streets. One environmental victory that I, along with three other candidates, can already claim are our votes supporting the remediation of the 9-acre junkyard on Route 107, with its uncontrolled runoff into the ocean, and replacing it with a beautiful new UPS facility, complete with landscaping and 500foot paved walkway along the water, not to mention the 250 local jobs it created, all paid for by the developer rather than taxpayers. Regarding WIN, while everyone in Saugus would like them to simply meet or beat the state-mandated 150 ppm NOx level, they simply don’t have to, because MassDEP allows it. I don’t like that anymore than you, but that is the reality. It’s the MassDEP, not the Board of Selectmen, that allows them to purchase ‘credits’ which permit them to operate at 185 ppm. The Host Community Agreement (HCA) reduces that number down to 175; not what we want, but a practical improvement is better than the other option, which was no improvement at all. Similarly, the HCA achieves reduced emissions of lead, cadmium, dioxin, and particulates to levels required of new waste to energy facilities under federal regulations. I’ve been criticized for voting for the HCA, with one critic claiming I “voted to extend the ash dump another 50 feet”, which is absurd, as the ash pile height is regulated exclusively by MassDEP, who has repeatedly failed Saugus for decades, not only by allowing expansion after expansion of the ash pile, but also the ridiculous practice of purchasing NOx credits. As much as I would prefer to see the ash pile capped at 50 feet, given their record, I simply don’t trust MassDEP to do right by Saugus, so I stand by the vote that I, along with a majority of three Selectmen made to approve the agreement. If MassDEP caps the ash pile at 50 feet, then the HCA becomes moot; the agreement is simply an insurance policy in case MassDEP extends the ash pile yet again. Michael J. Serino: My name is Michael J. Serino, I am a graduate of Saugus High School and the University of Massachusetts. My environmental public service record includes: former chairman of the Saugus Conservation Commission and the former Chairman of the Open Space Committee. I am a long-time member of Saugus Action Volunteers for the Environment (SAVE). I am also a member of the Conservation Law Foundation. Throughout my life, I have been advocating for the protection of our environment. Saugus is fortunate enough to have valuable natural resources such as: Rumney Marsh, the Saugus River, Breakheart Reservation and Pranker’s Pond. Therefore, we need to protect our valuable natural resources. I honestly believe that early education is the key in protecting our environment for future generations. My environmental vision for Saugus includes: protecting our air quality, water and natural resources. Continue efforts to reduce our waste stream and carbon footprint and expand our open spaces and recreational facilities. My vision and record includes: • CHARM recycling center. Solar Panel Farm Ongoing water and sewer programs throughout our community. Environmental educational programs in our public schools. • Expanded open/space recreational facilities, like our walking/bike path. Ongoing tree planting program. Continue replacement of town vehicles with electric vehicles. • The closing of the toxic ash landfill in the Rumney Marsh, ACEC area. In conclusion, the residents of Saugus, thanks in part to SAVE, are more aware of the environmental issues that we continue to face as a society today. My years of public service in advocating for the protection of our environment, is a testament to my commitASKS | SEE PAGE 15 PASSIVE ACTIVITY LOSSES The 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 offset 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 offset 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 offset 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 offset income taxes associated with that passive activity. Any excess tax credits must then be carried forward to be offset 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 offset 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 modified 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 filing 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 offset against other passive income. If there is no other passive income, the losses cannot be offset 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 offset 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, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation.

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