Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

Does Massachusetts treat term gains and carry over losses…

Jim,Does Massachusetts treat long term...
Jim,Does Massachusetts treat long term gains and carry over losses differently from the Feds?I have had unused long and short term capital losses that have carried over for years on the Federal form (D). I use H&R Blocks Taxcut (old name) software for a decade+.The time came to use it with a longterm gain. On the Fedearl return, I see the longterm carryover loss offset the longerm capital gain. However, I don't see this happen on Mass Schedule D, which shows no carryover loss, and therefore nothing to offset against!I want to be sure this is correct.Thanks!
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 hour by:
1/19/2018
James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 229
Experience: 24 years of continuing education and experience.
Verified

Hello again,

Thank you for requesting me. Mass. has its own rules regarding capital losses. They do not follow federal law. I don't know what kind of gains you're offsetting nor what kind of losses you're using to offset them, but just to be sure you've covered all your bases, check to see if your tax program has created a Mass. Schedule B for interest and dividends. If it's required, certain losses can be used to offset interest and dividends, and the program should default to the Schedule B deduction first, before entering any losses on Schedule D.

Ask Your Own Tax Question
Customer reply replied 1 month ago
No problem, Jim! I really like your super thorough answers, so you only have yourself to blame for it :):)Just checked. Yes, there is a Mass Sched B, and it has only the interest and dividends I got, nothing else.Sooo, to clarify, my long term capital gains are from sale of stock. I do have long and short term carryover losses from a decade +, that has never been used, other than being bled at 3000/year absent any gains to offset against in the intervening years.
Customer reply replied 1 month ago
Where should I go with this?

I'd go back six years. Break down your long term and short term losses that had to be carried forward on your federal returns for each of those years. Then call your software provider and ask if you should be seeing any loss carryforward on any of your state returns for those years. I don't believe there's been any significant changes in the law since 2002. And your Mass. form Schedule D clearly has a provision for a carryforward loss. In these cases I find the software providers provide the quickest and most reliable answers. Of course I always double check with the DOR.....

Ask Your Own Tax Question
Customer reply replied 28 days ago
OK. Thanks. I will keep you posted of my findings..
Customer reply replied 28 days ago
Ohhh. I should mention the bulk of the short term and long term losses happened over a decade ago, in one shot, and has been carried forward every year. I have added one stock that went under, since then...

That shouldn't be a problem. The reason I suggested you contact your software provider is that Massachussets law in this regard is quite complicated. They have three different "classes" of income: Class A, B, and C. Each has its own rules for determining adjust gross income, and they've been tinkered with over the years. I don't believe there've any major changes in the past 10 years but you want to check the status of those carry forwards at the state level.

Ask Your Own Tax Question
Customer reply replied 28 days ago
What puzzles me is that the carry forward happened on the Fed Sched D, but not on the Mass Sched D, where there is no trace of it!! I have been using the same SW for a decade+, so that is making me wonder if the SW figured this out correctly, or the developer goofed up.Assuming I can mirror the Mass Sched D with the Fed Sched D, will the return be flagged for a carryover loss suddenly showing up? I do have the trail with the Fed Sched Ds, however. Tnx

Like I said, the rules are complex. You really need to connect with the SP. Mass. allows you to carry forward capital losses. But losses are always calculated with the initial losses being applied to interest and dividends on Schedule B. You would have to go back over your old tax returns to figure out what happened to your former losses before you take them on your latest return because DOR is going to wonder why you didn't report them as carryforwards when they occurred. It's entirely possible, if you reported interest and dividend income, that capital losses were applied to those gains on Schedule B, and didn't carry over to Schedule D.

James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 229
Experience: 24 years of continuing education and experience.
Verified
James Daloisio and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 25 days ago
I spoke to DOR, and they confirmed that, broadly speaking, they treat carryover losses the same way as the feds. They asked me to enter the short/long term carryover loss figures, and include Fed Schedule D, in case they want to look at it.
After a few phone calls, the SP (HRBLock) was able to tell me that while the carryover happens automatically each year with the Fed return software, the State version doesn't import this from the Fed return. There is a check box in the state interview to use to make it ask you for the carry over loss figures for the state. I had missed this having implicit faith in the sw to import/carry over from the federal data. The disparity in the federal vs state treatment of the longterm gains by the sw was the flag that made me dig deeper and catch the error.Thanks for your help!
Ask James Daloisio Your Own Question
James Daloisio
James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 229
229 Satisfied Customers
Experience: 24 years of continuing education and experience.

James Daloisio is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
What would the rate of capital gains tax on income property
what would the rate of capital gains tax on income property held for 25 years by an owner who of late had and will have income of less than20,oooIt is also my understanding we (my brother and I) are e… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
My State and Federal 2017 Tax returns were completed and
My State and Federal 2017 Tax returns were completed and checked and then submitted electronically to both. I have received a letter from the State and am unable to attach letter to this commication.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,044 satisfied customers
I was audited for my federal tax return in 2014 and I
I was audited for my federal tax return in 2014 and I submitted all the requested info and the irs decided there was no extra tax to pay. I just received another audit for the year 2015 for the same i… read more
abci168
abci168
Principal
27 satisfied customers
How does a corporate officer report dividends received from
How does a corporate officer report dividends received from a c-corporation (his) paid to him? … read more
Carter McBride
Carter McBride
LLM
432 satisfied customers
I NEED MY 2016 ADJUSTED GROSS INCOME. I NEED GROSS INCOME TO
I NEED MY 2016 ADJUSTED GROSS INCOME JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: I NEED GROSS INCOME TO FILE 2017 TAXS JA: Is there anything else … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,044 satisfied customers
I received email stating that our 2017 federal tax return
I received email stating that our 2017 federal tax return prepared via TurboTax had been completed and filed and accepted by the IRS but no refund amount was stated therefore current refund amount and… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,044 satisfied customers
Ied dividend and capital gains worksheet no longer
ied dividend and capital gains worksheet no longer available … read more
Carter McBride
Carter McBride
LLM
432 satisfied customers
On form 1041, capital gains have to be taxed at the estate
On form 1041, capital gains have to be taxed at the estate level, correct? No distribution deduction may be taken?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Under the new tax plan if my federal adjusted gross income
Under the new tax plan if my federal adjusted gross income is $77,230.00 how much are my federal taxes? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,044 satisfied customers
On Form 706 Schedule D, if the proceeds were paid directly
On Form 706 Schedule D, if the proceeds were paid directly to a funeral home to pay for funeral expenses should the face value of the policy be included on this schedule? Also should the funeral expen… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Are the accumulated dividends on a life insurance policy
Are the accumulated dividends on a life insurance policy usually apart of the gross value listed on schedule D of form 706 or should it be reported somewhere else?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
A law firm (which is a Schedule C filer) has gross income of
A law firm (which is a Schedule C filer) has gross income of 1,000,000 & Net Income 0f 280,000. In the tax reform just passed, there is a 20% deduction for law firms that have income less than 315,000… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,300 satisfied customers
I have a stock trading margin account. So, I have dividend
I have a stock trading margin account. So, I have dividend income of $12,000 and margin interest expense of $10,000. Is the $10,000 deductible? … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I plan to declare some foreign interest and dividends
I plan to declare some foreign interest and dividends totaling about 3000 pounds in each of the last 3 years, on some of which i suffered withholding tax at source. I have not been submitting an annua… read more
taxmanrog
taxmanrog
Master\u0027s Degree
815 satisfied customers
FOR GUILLERMO: What line on the 1040 income tax return is
FOR GUILLERMO: What line on the 1040 income tax return is used to determine the sponsor's income for Form I-864? Is it line 22: TOTAL INCOME? Or, line 37, ADJUSTED GROSS INCOME?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
What tax form is filed to report dividends paid by US Corp?
What tax form is filed to report dividends paid by a US Corp which is owned by a Canadian Corp? I think it might be 1042S. I want to know the rate of WH.… read more
abci168
abci168
Principal
27 satisfied customers
Same question on the taxation of interest and dividends (on
Same question on the taxation of interest and dividends (on mutual funds) earned inside a disclaimed portion trust ... disclaimer trust . The original owner of a trust passed and the spouse declined a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Capital Gain - A taxpayer has capital loss (short term and
Capital Gain -A taxpayer has capital loss (short term and long term) carryover from stock sales. He also has loss carryover from rental property.When he sales the rental property, all the rental loss … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x