The Department of Revenue has just advised taxpayers, in Directive 10-7, that a taxpayer occupying his or her principal residence under the terms of a life estate (which requires the life tenant to pay real estate taxes) and is otherwise eligible may claim the Senior Circuit Breaker Tax Credit.
In the most common life estate situation, a remainder interest in the home is transferred to a third party, often a child, with the grantor(s) retaining a life interest either individually or jointly. The life tenant generally retains the exclusive right to use the property during his or her lifetime, but that right expires automatically upon the death of the last life tenant(s).
Generally, the life tenant is responsible for real estate taxes, insurance, and ordinary maintenance costs and upkeep of the property.
Thus, DOR wants to make it abundantly clear that senior taxpayers who are life tenants are most certainly eligible for the Senior Circuit Breaker Tax Credit.
Courage at Work posted on Sep 1
“I was amazed that Mark and so many senior staffers took time out of their busy and hectic schedules to be supportive of me and the ALS cause,” she said. “It proves that no matter how challenging work is, there’s always time to show a little love.”
VIDEO: Introducing MassTaxConnect! posted on Aug 24
Take a look at our newest video introducing you to MassTaxConnect, our new, modernized online tax system. Hear from Commissioner Mark Nunnelly and several DOR employees about what to expect come November 30th when we launch MassTaxConnect for business taxpayers, practitioners, and professionals. Get an …Continue Reading VIDEO: Introducing MassTaxConnect!
What’s New with MassTaxConnect? posted on Aug 13
MassTaxConnect for Massachusetts Business Taxpayers Available November 30, 2015! Things are about to get easier and faster for Massachusetts business taxpayers. MassTaxConnect will replace WebFile for Business later this year and will feature the best of what WFB offers plus state-of-the-art enhancements to make tax …Continue Reading What’s New with MassTaxConnect?