32 MAY 11 - MAY 17, 2018 BROOKLYN MEDIA GROUP
Would you rent a whole floor of a Bay
Ridge standalone for $2,500 a month?
BY HANNAH FRISHBERG
Proving the suburban dream is
alive in Brooklyn, this sprawling
top-floor two-bedroom in
a Bay Ridge standalone at 177 82nd
Street comes with both original details
and ’80s updates.
The living room and master bedroom
are the highlight of the apartment, with
curved windows, original moldings and
parquet in both. The living room has
built-in bookshelves to boot. Perhaps
the landlord would allow alteration of
the wall treatments — wallpaper in the
bedroom and sponge-textured paint in
the living room.
The master has a cabana-like ensuite
bath, not pictured, with shower only. A
second bath has a tub, although it’s a
small one, with a shower enclosure
built up around it.
The dining room has exposed brick
and a tile floor. While the open kitchen
could do with an update, all appears to
be serviceable and in move-in condition.
REPRINTED FROM
Is $2,500 a reasonable rent for a floor-through
apartment in this 82nd Street home?
The amount of natural light this
home clearly gets from all sides is lovely
— not to mention rare — although
the digs could prove breezy come
winter. There is also stained glass,
according to the listing, although it’s
not pictured.
The unit has its own private entrance
Photos courtesy of Corcoran
and stair off the front
porch, and a large deck
above said porch. With five closets, it
also has quite a lot of storage space.
A washer and dryer are allowed (although
not supplied), and so are pets.
The circa-1900 townhouse has a
shingled Dutch-style gambrel roof over
a bay windowed turret and a wraparound
porch. While most of the details
appear to be intact, including the front
door and porch, the front entrance has
been sheathed in Permastone.
Much of Bay Ridge’s charm comes
from its relative isolation, and it’s no
surprise this generously sized unit is
closer to Staten Island than Manhattan
and 7.5 blocks from the 77 Street
R station.
Corcoran’s Alexandra Gupta has
the listing for $2,500 a month. Worth
it for the space and character or too far
afield for the ask?
THE ELDER LAW MINUTE TM
Prior to the new tax law, the federal
exclusion amount for estate taxes
was $5 million adjusted for inflation
from the year 2011. The exclusion
amount is the amount that individuals
can pass to their family and
loved ones without the imposition
of Federal estate and gift taxes. In
its annual Revenue Procedures, the
Department of the Treasury issues
inflation adjustment figures each
year.
With the inflation adjustment,
the federal exclusion amount would
have been $5.6 million as of January
1, 2018. The new tax law effectively
doubled the exclusion amount.
Ordinarily, based on the Treasury
Department’s standard calculations,
the exclusion amount would have
risen to $11.2 million. However, the
new tax law also amended how the
inflation amount is calculated. Due
to the new adjustment, the actual
exclusion amount as of January 1,
2018, is $11.18 million.
Clearly, the increase in the
exclusion amount is very significant
and offers an opportunity for serious
and broad estate tax planning. But
this doubled exclusion is only temporary
and will expire at the end of
2025. At such time, it will presumably
revert back to the original $5 million,
adjusted for inflation.
A common question is whether
the exclusion should be utilized by
taxpayers if it is merely temporary
in nature. If, for example, someone
gifts $10 million in property to his
children this year but passes away
in 2027, when the exemption has
reverted back to what it would have
been without the new tax law, will his
estate be subject to taxation?
An estate tax return is prepared
after a person dies and includes
any taxable gifts made during such
person’s lifetime. In this example, if
the exclusion has reverted back to $5
million plus the inflation adjustment,
can the fact that the gift was made at
a time when the exemption was $11.2
million apply, thereby eliminating
any estate/gift taxes?
The answer seems to be that the
exclusion at the time the gift was
made will apply. Section 2001(g) of
the Internal Revenue Code of 1986,
as amended, ostensibly considers the
time the gift was made in applying
the exclusion. The section directs
the Treasury to release regulations
clarifying this provision. Such regulations
have not yet been issued.
Thus, the answer is not 100 percent
clear.
Based on the above, for those with
an estate that exceeds $5.6 million, it
would seem sensible to engage in current
gifting to utilize this temporary
exclusion. Even if the excess gift does
get included in the individual’s estate
when he dies, it will still have been
prudent to make the gift.
In such case, the appreciated value
(after the time of the gift) will escape
estate taxation.
While the exclusion amount of
$11.18 million is transitory, there is
a myriad of estate and income tax
planning that can be implemented
at this time.
One should also note the relatively
low New York State estate tax exclusion
(currently $5.25 million) and the
fact that New York does not impose a
gift tax, thus making gift planning all
the more important.
It is always advisable to seek the
counsel of a professional who can
offer a plan that is custom tailored to
one’s specific estate.
Ronald A. Fatoullah, Esq. is the principal
of Ronald Fatoullah & Associates,
a law firm that concentrates in elder
law, estate planning, Medicaid planning,
guardianships, estate administration,
trusts, wills, and real estate.
Debby Rosenfeld, Esq. is a senior staff
attorney at the firm. The law firm can
be reached at 718-261-1700, 516-466-
4422, or toll free at 1-877-ELDER-LAW
or 1-877-ESTATES. Mr. Fatoullah is
also a partner with Advice Period, a
wealth management firm, and he can
be reached at 424-256-7273.
BY RONALD A. FATOULLAH, ESQ. & DEBBY ROSENFELD, ESQ.
Applying the Treasury’s new inflation adjustments