Instructions For Form 1 - Massachusetts Resident Income Tax - 2006 Page 27
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
3427
2006 Form 1 — Schedule Instructions
Line 14. Subtotal
Line 21. Tax On Long-Term Capital
Deductible Royalties from U.S. Energy
Conservation Patents
Gains
If line 12 is greater than “0,” subtract line 13 from
Enter any income you received from certain U.S.
line 12. If line 12 is less than “0,” combine lines 12
Multiply line 20 by .053 (5.3%) and enter the result
patents that are approved by the Massachusetts
and 13.
here and in Form 1, line 24.
Division of Energy Resources as being useful for
If Schedule D, line 14 is a loss and Schedule B,
Note: If choosing the optional 5.85% tax rate,
energy conservation or for alternative energy
line 24 is “0” or greater and Schedule B, line 31 is
multiply line 20 by .0585 and enter the result here
development. For more information, contact the
a positive amount, go to Schedule D, line 15.
and in Form 1, line 24.
Division of Energy Resources by calling
If Schedule D, line 14 is a loss, and Schedule B, line
(617) 727-4732. If such approved patent income
Line 22. Available Losses for
21 is “0” or less, omit Schedule D, line 15, enter the
is other than royalty income, use the applicable
Carryover
amount from Schedule D, line 14 in Schedule D, line
schedule and explain.
Enter the amount from Schedule D, line 16, only if
16, omit Schedule D, lines 17 through 21 and enter
Passive Losses
it is a loss.
the amount from Schedule D, line 16 in Schedule
As a result of differences in U.S. and Massachu-
D, line 22, and enter “0” on Form 1, line 24.
setts rules in 1987, the calculations you made for
Schedule E, Part I
Line 15. Long-Term Capital Losses
passive losses on your 1987 U.S. and Massachu-
setts returns may have differed. Differences in
Applied Against Interest and
Note: If showing a loss, be sure to mark over the
amounts reported in 1987 for U.S. and Massachu-
“X” in the box to the left.
Dividends
setts tax purposes should be adjusted when the
If Schedule D, line 14 is a loss, and Schedule B,
Rental, Royalty and REMIC Income
property is disposed of or the deduction is used up.
line 24 is “0” or greater and Schedule B, line 31 is
In addition, passive losses allowed for Massachu-
or Loss
a positive amount, complete the Long-Term Capi-
setts tax purposes in 1987, but carried over for U.S.
tal Losses Applied Against Interest and Dividends
Line 1a. Rental and Royalty Income
tax purposes, cannot be used again for Massachu-
Worksheet for Schedule B, Line 32 and Schedule
or Loss
setts tax purposes when such carryover losses
D, Line 15.
are eventually allowed for U.S. tax purposes.
Enter total rental and royalty income or loss in-
cluded in U.S. Form 1040, Schedule E, Part I, line
Line 16. Subtotal
To the extent there are applicable adjustments for
26 and U.S. Schedule E, Part V, line 40.
Massachusetts differences, taxpayers must cal-
Combine line 14 and line 15. If Schedule D, line 16
is “0,” enter “0” in lines 17 through 20 and omit
culate allowable losses on a pro forma U.S. Form
Line 1b. Real Estate Mortgage
lines 21 and 22. If Schedule D, line 16 is a loss,
8582, Passive Activity Loss Limitations.
Investment Conduit (REMIC)
omit lines 17 through 21 and enter the amount
Note: Same-sex joint filers should use Federal
Income or Loss
from line 16 in line 22.
Form 8582 to recalculate their loss limitations as
Enter total Real Estate Mortgage Investment Con-
though they were filing a joint federal return. See
Line 17. Allowable Deductions
duit (REMIC) residual income or loss from U.S.
TIR 04-17 for more information.
From Your Trade or Business
Schedule E, Part IV, line 39.
Line 4. Abandoned Building
Enter the appropriate amount from Massachu-
Line 2. Massachusetts Differences
setts Schedule C-2 if you qualify for an excess
Renovation Deduction
Enter and explain any differences between total
trade or business deduction. Generally, taxpayers
In line 4 enter 10% of the costs of renovating a
rental, royalty and REMIC income on the U.S. re-
may not use excess 5.3% deductions to offset
qualifying abandoned building in an Economic
turn and the same type of income on your Mass-
other income. However, where the taxpayer files a
Opportunity Area. For further information, contact
achusetts return. Possible differences include trust
Massachusetts Schedule C or Schedule E, Mass-
the Massachusetts Office of Business Develop-
provisions, deductible royalties from approved
achusetts law allows such offsets if the following
ment by calling (617) 973-8600.
U.S. energy conservation patents and passive
requirements are met: the excess 5.3% deductions
losses, as described below. Explain the differences
must be adjusted gross income deductions al-
Line 5. Total Rental, Royalty and
in the space provided or enclose an additional
lowed under MGL Ch. 62, sec. 2(d); and these ex-
REMIC Income or Loss for
sheet if necessary.
cess deductions may only be used to offset other
Massachusetts
income which is effectively connected with the
Trust Provisions
Subtract line 4 from line 3. Remember to subtract
active conduct of a trade or business or any other
Enter any rental, royalty or REMIC income or loss
losses when calculating the total. This figure
income allowed under IRC, sec. 469(d)(1)(B) to
shown on your U.S. return that is taxed on a Mass-
should be added to any amount(s) in Schedule E,
offset losses from passive activities.
achusetts Fiduciary Return, Form 2.
Part II, line 8 and/or Part III, line 11 and the total
entered on Form 1, line 7.
Line 19. Excess Exemptions
Enter in line 19 the amount from line 10 of the Ex-
cess Exemption and Excess Home Heating Fuel
Deduction Worksheet (only if single, head of
household or married filing joint return).
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial