![Massachusetts Doubles Property Tax Exemption Massachusetts Doubles Property Tax Exemption](https://insuranceinfonews.com/wp-content/uploads/https://images.thinkadvisor.com/contrib/content/uploads/sites/415/2023/10/05_Tax_Rates_Computer_Shutter_640x640.jpg)
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It is going to additionally cut back the state property tax on estates valued at greater than $2 million by nearly $100,000, based on attorneys Sara Wells, Laura Lerner and Matthew Tudino.
In contrast to the federal property tax exemption, the Massachusetts exemption “isn’t listed for inflation and isn’t moveable between spouses — that’s, for married {couples}, the primary partner to die should use the Massachusetts property tax exemption by passing property value $2 million to people aside from the decedent’s partner or to sure varieties of trusts for the advantage of the decedent’s partner or different people, or that partner’s exemption might be misplaced,” the Morgan Lewis attorneys state.
Additional, “the worth of actual property and tangible private property positioned exterior of Massachusetts might be includible in a Massachusetts resident’s gross property underneath the brand new regulation,” based on the attorneys.
“Nonetheless, the quantity of any property tax on account of Massachusetts might be diminished in proportion to the worth that the non-Massachusetts situs property bear to the entire gross property,” they wrote.
As an example, “if the property tax due on a Massachusetts resident’s gross property (together with non-Massachusetts situs property) is $100,000 and the non-Massachusetts situs property make up 20% of the gross property, the property tax due might be diminished by 20% to $80,0000,” the attorneys relayed.
Because the regulation was enacted on Oct. 4, the Massachusetts Division of Income “has not but launched revised property tax types and directions,” the lawyer state. “If an property tax return for a person who died this 12 months has already been filed, a refund request must be filed based mostly on the brand new $2 million exemption.”
For property tax returns which are due within the coming weeks and months, “it might be prudent to file an extension whereas the Division of Income works on issuing revised types,” the Morgan Lewis attorneys stated.
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