Dear Followers,

We are in a New Year. I always hesitate to tell everyone “Happy New Year” since for some, it is another year of grieving, pain, crying, and changing. One of the reasons that I write this newsletter monthly is to let you know that even if I don’t know you, I understand your pain, your grief, and your lonliness. I want to give you hope. Grief is always with us but it changes and helps us grow even if it does not feel like it.

Sending love and hugs,

Carolyn

This Month’s Financial Tip

TIP: Contact your local bank or credit union to get the name of a professional and independent appraiser. The cost varies by state but generally, the cost is around $500 to potentially save you a lot of money in taxes.

Step-up in basis – It is a US tax rule that adjusts the original value of a non- retirement asset to a date of death value. The new value is then used to calculate capital gains when the asset is sold.

Reach out to Carolyn if you want to understand the new value of your assets. ^{[email protected] or 877.328.4037 ×700}

Step Up In Basis Example

Judy and her husband jointly owned their home. Jack, her husband dies.

Until she met with me, she had no idea that she needed to do anything about getting her home appraised. We got it appraised, so let’s look at the numbers.

Judy and Jack paid $100,000 for their home in 1980. They did $100,000 of renovations. In 2024, the house value was $800,000. Couples have a $500,000 capital gains exclusion if they sell their property before death or within 2 years of one person dying. If the remainder person sells after the two year period, they only receive $250,000 capital gains exclusion.

Jack dies House value $800,000 Cost + Improvements $200,000

Judy sells the house in 18 months and does not get it appraised. $800,000 - $200,000 (cost base) - $500,000 = $100,000 that she has as capital gains x 20% tax = $20,000 in capital gains tax.

Judy gets the house appraised. Judy and Jack’s value is divided in two parts – what they paid and improvements = $100,000/person. The house is appraised at $800,000. Jack’s date of death value is now $400,000. Judy’s is $100,000. $800,000 - $100,000 - $400,0000 - $500,000 (exclusion) = $0.00 capital gains. She would owe no taxes. 

That simple appraisal by a professional saved her $20,000. *If you are in a community property state, then you receive 100% date of death value on non-retirement assets (real estate, brokerage accounts)

Reach out to Carolyn if you want specific calculations on date of death appraised values.

Please call me 941-841-6564 or email me at [email protected]

Selling a Home is Too Taxing

Below is an article with some horror stories after closing.

Always check with professionals about tax law changes.

Books Worth Reading

I found this book out of the many I read on grief to be the most helpful. It talks about how family and friends are grieving also.

It is available on Amazon.

 How to Go On Living When Someone You Love Dies by Therese A. Rando

This Month’s Recipe

For a quick and warm dish for the cold of Winter, try this easy Pasta dish.

If you want to know the back story on how the Italians created this dish, check out the history of it on Chat GPT or Google.

Puttanesca

Ingredients

12 oz spaghetti – Barilla high protein works well

3 Tbsp Olive Oil 3-4 garlic cloves, thinly sliced

½-1 tsp red pepper flakes

1 can crushed tomatoes

4 minced anchovies*

1/3 cup Kamata olives, pitted and chopped

2 Tbsp capers

Salt to taste

Fresh ground pepper

Fresh parsley, chopped (for garnish)

Directions:

1. Boil pasta in large pot of salted water. Cook until al dente. Reserve ½ cup pasta water, then drain.

2. Heat olive oil in a wide pan over medium heat. Add garlic and red pepper flakes; cook 30-60 seconds until fragrant, not brown. Add anchovies, cook until they dissolve in the oil – about 1 minutes.

3. Add crushed tomatoes, olives, and capers. Simmer uncovered for 8-10 minutes, stirring occasionally.

4. Stir in pasta to the sauce. Toss well, adding a splash of reserved pasta water if needed.

5. Taste and adjust salt. Add black pepper and parsley.

   *You can substitute anchovies for extra capers + a splash of soy sauce

Cozy Up and Enjoy! Serves 2-4.

Accurate Advisory Group and its representatives do not provide tax or legal advice. Any discussion of tax matters contained herein (including attachments or related materials) is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law. Clients are encouraged to consult with their independent tax advisor, CPA, or attorney regarding their specific situation before making any financial, investment, or estate planning decisions.