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The Rodriques Homestead
Exemption - A homestead can now be placed against property being held
in a revocable trust. On February 23, 2010, the United States Bankruptcy Court ruled that a Massachusetts Homestead
Exemption can now legally be declared in favor of an owner whose property is being held by a revocable trust. Therefore,
if your property was deeded to a revocable trust previously and you have not filed a homestead you need to do so immediately. Estate
Tax Exemption Update - it does not appear that Congress will
make any changes to the estate tax exemption before the end of the year. This means that there will be no federal estate
taxes due for deaths occurring on or after January 1, 2010, but before January 1, 2011. However, it is possible that
a new estate tax law will be enacted and become retroactive.
$8,000 Homebuyer Tax Credit Extended - the
$8,000 credit was scheduled to lapse on December 1 but will now be in effect through the end of June 2010. Homebuyers must
sign a contract before April 30, 2010 and close by June 30, 2010. The income limits were also raised: Single buyers can now
earn up to $125,000 and still get the full credit while a married couple can earn $225,000. The bill also made more
homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the
past three years -- still qualify for an $8,000 rebate. However, now people who want to trade up can also qualify. Those
who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they
close on a purchase by the end of June.
Required Minimum Distributions
Waived For 2009 - A new law enacted
in late 2008 provides that retirement plan account participants, IRA owners, and their beneficiaries do not have to take RMDs
for 2009. Taxpayers who can take advantage of this change won't be forced to sell stock or
mutual fund shares held in retirement accounts when their value is exceptionally depressed. This change helps retired taxpayers
who do not need to rely on their RMDs for living expenses. By not making the RMD for 2009 (or withdrawing less than the RMD)
from their qualified plan accounts and/or IRAs, they will wind up with less taxable income for 2009, and, possibly, avoid
(or mitigate the effect of) AGI-based phase-outs of tax breaks. They will also have more tax-sheltered amounts to leave to
their beneficiaries.
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