THE SAUGUS ADVOCATE – FRIDAY, NOVEMBER 12, 2021 Page 17 REAL ESTATE TRANSAC TIONS newspaper. It is reprinted with permission from the publisher, The Warren Group. For a searchable database of real estate transactions and property information visit: www.thewarrengroup.com. Copyrighted material previously published in Banker & Tradesman/The Commercial Record, a weekly trade BUYER1 Raymond, John SWEARING | FROM PAGE 6 really excited to work and move the district forward and let the educators do what the educators need to do,” he said. Fisher, who made the motion to name Serino as the vice-chair, said he is excited about the future of the school district after a challenging two years. “I want to thank the students, the teachBUYER2 Raymond, Yoscairy SELLER1 B&B Boston Prop LLC ers and everyone who hung in there over the last two years,” Fisher said. “It probably was the most diffi cult two years the school system ever had,” he said. Then he thanked his friend, candidate Gerow, whom he said “did an amazing job on her campaign … and the fi rst thing she did was to come here tonight to wish us well.” SELLER2 ADDRESS 63 Essex St CITY Saugus DATE 19.10.2021 PRICE $770 000,00 “YOUR FINANCIAL FOCUS” JOSEPH D. CATALDO MAKING GIFTS I f you plan on making gifts of appreciated property such as stocks or real estate, keep in mind that the donee of your gift will accept the property with a cost basis equal to your cost basis. The cost basis might be the purchase price of the original stock or real estate plus any improvements made to the real estate. If the real estate is rental real estate, the cost basis is reduced by depreciation taken over the years since fi rst placed in service. Generally, it is best to gift assets that have not appreciated much, if at all. Cash is always a good asset to gift because there are no cost basis issues or date of death valuation issues. You must always consider whether or not you deem it best to make outright gifts to children or to make gifts to an irrevocable Trust for their benefi t. An outright gift to a child that might have creditor issues or that might be involved in a divorce would not be such a good idea. Trusts have spendthrift provisions that would offer protection to a child in the event of a lawsuit or divorce. Currently, there is no gift tax in Massachusetts. The federal gift tax exemption is currently $11,700,000. Under the Biden Administration proposal, the gift tax exemption would be reduced to $1,000,000. The federal estate tax exemption is currently $11,700,000. The Biden Administration’s proposal is to reduce it to $6,000,000. The federal gift tax exemption and estate tax exemption are a unifi ed exemption. You can either gift $11,700,000 federal gift tax free or die and bequeath $11,700,000 estate tax free, but you can’t do both. Although there is no gift tax in Massachusetts, taxable gifts (i.e. gifts in excess of $15,000 per donee) reduce the $1,000,000 threshold for being required to fi le a Massachusetts estate tax return. If you gave away $750,000 and were still left with $750,000 in assets at the time of your death, even though your estate ended up being less than $1,000,000, a Massachusetts estate tax return would still need to be fi led. The threshold would have been lowered to $250,000 in estate assets. When you die with appreciated stock or real estate that is includible in your taxable estate (even though your estate might be less than $11,700,000 for federal purposes or $1,000,000 for Massachusetts purposes) your beneficiaries obtain the benefit of Internal Revenue Code Section 1014 and receives a new cost basis equal to the fair market value at the time of your death. The huge benefi t to your benefi ciaries is that when they sell the appreciated property shortly after you pass, there would be no capital gain or very little capital gain resulting in no capital gains tax or very little capital gains tax. Another benefi t of Code Section 1014 is that the benefi ciary of the appreciated property receives preferential longterm capital gains tax treatment even if the beneficiary sold the appreciated property within one year from the date of death. Remember, short term capital gains are taxed at ordinary income tax rates federally and are taxed at the rate of 12% in Massachusetts. It is always important to select what assets to gift and how to make the actual gift. The tax implications can be signifi cant. BHRC | FROM PAGE 15 LIKE US ON FACEBOOK ADVOCATE NEWSPAPER FACEBOOK.COM/ADVOCATE.NEWS.MA lead to irresponsible late-night sessions and a mad rush to act on dozens of bills in the days immediately preceding the end of an annual session. During the week of November 1-5, the House met for a total of 19 minutes while the Senate met for a total of 58 minutes. Mon. Nov. 1 No House session Senate 11:14 a.m. to 11:16 a.m. Tues. Nov. 2 House 11:00 a.m. to 11:09 a.m. No Senate session Wed. Nov. 3 No House session Senate 1:28 p.m. to 2:18 p.m. Thurs. Nov. 4 House 11:02 a.m. to 11:12 a.m. Senate 11:16 a.m. to 11:22 a.m. . Fri. Nov. 5 No House session No Senate session Bob Katzen welcomes feedback at bob@beaconhillrollcall.com
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