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Matthew Joseph Leonard

Matthew Leonard’s Answers

2 total

  • Which forms would I file at the Cranston Probate Court? I want this to go smoothly!

    My mother passed away. She has $8400 in total assets. She did not own ANYTHING. She was on Medicaid - the state paid her nursing home bill. They have a lien and now that she is gone - they would recover the $8400. She does have a will - but ...

    Matthew’s Answer

    For your mother to have qualified for Medicaid she would have had to have less than $4,000 of countable assets. I would suggest you look at the assets themselves and determine if they are subject to the probate court jurisdiction, which would include those assets that she died with in her own name that did not have a beneficiary designation or were otherwise transferable upon death. Those assets do not pass through probate or the probate courts. You will likely be able to file for an Informal Administration which would basically be open and closed immediately. You can find the petition on the Rhode Island Secretary of State's website. You will need to file the petition along with a death certificate and a paid funeral bill and the original will. Rhode Island law does require you to file this petition within 30 days of her passing. You can contact the City Probate Clerk and they will walk you through the forms but will not provide you with legal advice - for that you will need to schedule time with an attorney.

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  • When selling a house, if you use the proceeds to buy another house, can you avoid paying taxes?

    If this is true: if the original house is a multi family, does the new one also have to be a multi family or can it be a single family? If the house is sold in RI, can the new one be bought in MA? Is there a limit on the amount of time within...

    Matthew’s Answer

    With a Section 1031 you can DEFER the paying of taxes that would otherwise become due and payable upon the sale of investment property. 10301 Exchanges do not apply to the sale of a personal residence and should be used carefully for the sale of a second/vacation home. If the relinquished property is partially personal use and partially investment use, then the Section 1031 would only apply to the investment portion of the property. To defer one hundred percent of the tax triggered at sale, the replacement property must be equal to or greater than the relinquished or old property sales price. Though 1031 Exchanges are called "Like-kind" exchanges, you do not need to purchase another multi-family property, it can be a single family, so long as it remains investment use. You can sell the property in Rhode Island and purchase in Massachusetts. Once the sale of your property closes, the intermediary receives the cash from the sale. Within 45 days, you must specify the property you want to acquire in writing to the intermediary. You can designate three properties so long as you eventually close on one of them. Once you designate, you must close on the new property within 180 days of the sale of the old. Start counting when the sale of your property closes. The 45 days and 180 days run concurrently.

    As for the inheritance, your basis in the property is equal to the value of the property on the day the property was inherited. The difference between that figure, adding in improvements, reduced by depreciation and the sale price is your potential gain that can be deferred if a 1031 Exchange is performed and if not, should receive capital gain tax treatment.

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