Instructions For Form 1 - Massachusetts Resident Income Tax - 2013 Page 38
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2013 Form 1 — Schedule Instructions
If you did file a U.S. Schedule D, enter the capital
Line 12. Long-Term Gains on
If Schedule D, line 15 is a loss and Schedule B,
gain distributions reported to you by a mutual fund
line 24 is “0” or greater and Schedule B, line 31 is
Collectibles and Pre-1996
or real estate investment trust included in U.S.
a positive amount, go to Schedule D, line 16.
Installment Sales
Schedule D, line 13, column h.
If Schedule D, line 15 is a loss, and Schedule B, line
Enter in line 12 the amount of long-term gains on
21 is “0” or less, omit Schedule D, line 16, enter the
collectibles and pre-1996 installment sales classi-
Line 7. Massachusetts Long-Term
amount from Schedule D, line 15 in Schedule D, line
fied as capital gain income for Massachusetts
Capital Gains and Losses Included
17, omit Schedule D, lines 18 through 22 and enter
purposes that are included in line 11.
in U.S. Form 4797, Part II
the amount from Schedule D, line 17 in Schedule
Long-term gains on collectibles and pre-1996 in-
Enter amounts included in U.S. Form 4797, Part II
D, line 23, and enter “0” on Form 1, line 24.
stallment sales classified as capital gain income
treated as capital gains or losses for Massachu-
for Massachusetts purposes are taxed at the 12%
Line 16. Long-Term Capital Losses
setts purposes (not included in lines 1 through 6).
rate and should be entered on Schedule B, line 11.
Applied Against Interest and
These include ordinary gains from the sale of Sec-
tion 1231 property, recapture amounts under Sec-
Collectibles are defined as any capital asset that is
Dividends
tions 1245, 1250 and 1255, Section 1244 losses
a collectible within the meaning of Internal Rev-
If Schedule D, line 15 is a loss, and Schedule B,
and the loss on the sale, exchange or involuntary
enue Code section 408(m), as amended and in
line 24 is “0” or greater and Schedule B, line 31 is
conversion of property used in a trade or business.
effect for the taxable year, including works of art,
a positive amount, complete the Long-Term Capi-
rugs, antiques, metals, gems, stamps, alcoholic
tal Losses Applied Against Interest and Dividends
Line 8. Carryover Losses from
beverages, certain coins, and any other items
Worksheet for Schedule B, Line 32 and Schedule
Previous Years
treated as collectibles for federal tax purposes.
D, Line 16.
If you have a carryover loss from a prior year, enter
Line 13. Subtotal
in line 8 the total amount of carryover losses from
Line 17. Subtotal
Subtract line 12 from line 11 and enter the result
your 2012 Massachusetts Schedule D, line 23.
Combine line 15 and line 16. If Schedule D, line 17
in line 13.
is “0,” enter “0” in lines 18 through 21 and omit
Line 10. Differences
lines 22 and 23. If Schedule D, line 17 is a loss,
If Schedule D, line 13 is a loss and Schedule B,
Enter any differences between the gains or losses
omit lines 18 through 22 and enter the amount
line 21 is less than “0,” omit Schedule D, lines 14
reportable for Massachusetts tax purposes and the
through 16, enter the amount from Schedule D,
from line 17 in line 23.
U.S. gains or losses reported in Massachusetts
line 13 in Schedule D, line 17, omit Schedule D,
Schedule D, lines 1 through 8. Differences include:
Line 18. Allowable Deductions
lines 18 through 22 and enter the amount from
From Your Trade or Business
Schedule D, line 17 in Schedule D, line 23, and
Pre-1996 installment sales classified as ordi-
enter “0” on Form 1, line 24.
nary income for Massachusetts purposes;
Enter the appropriate amount from Massachu-
setts Schedule C-2 if you qualify for an excess
If Schedule D, line 13 is a gain and Schedule B,
Long-term capital gains or losses from transac-
trade or business deduction. Generally, taxpayers
line 21 is a loss, go to Schedule D, line 14.
tions reported as installment sales for U.S. income
may not use excess 5.25% deductions to offset
tax purposes but not for Massachusetts; and
If Schedule D, line 13 is a loss and Schedule B,
other income. However, where the taxpayer files a
line 24 is “0” or greater, go to Schedule D, line 14.
Massachusetts has adopted basis adjustment
Massachusetts Schedule C or Schedule E, Mass-
rules to take into account differences between
If Schedule D, line 13 is a gain, and Schedule B,
achusetts law allows such offsets if the following
Massachusetts and federal tax laws.
requirements are met: the excess 5.25% deduc-
line 24 is “0” or greater, omit Schedule D, lines 14
tions must be adjusted gross income deductions
through 16 and enter the amount from Schedule
Line 11. Adjusted Capital Gains and
D, line 13 in Schedule D, line 17.
allowed under MGL Ch. 62, sec. 2(d); and these
Losses
excess deductions may only be used to offset
Line 14. Capital Losses Applied
Exclude/subtract line 10 from line 9 and enter the
other income which is effectively connected with
result in line 11.
Against Capital Gains
the active conduct of a trade or business or any
other income allowed under IRC, sec. 469(d)(1)(B)
If Schedule D, line 13 is a positive amount and
If line 10 is a loss, add loss as a positive number
to offset losses from passive activities.
Schedule B, line 22 is a loss, enter the smaller of
to the amount recorded in line 9. See the follow-
Schedule D, line 13 or Schedule B, line 21 (con-
ing examples:
Line 20. Excess Exemptions
sidered as a positive amount) in Schedule D, line
Schedule D
Enter in line 20 the amount from line 8 of the
14 and in Schedule B, line 22.
Line
ex. A
ex. B
ex. C
ex. D
Schedule B, Line 36 and Schedule D, Line 20
If Schedule D, line 13 is a loss and Schedule B, line
19
$1,000 $1,000 *$0,700**$700*
Worksheet (only if single, head of household or
24 is a positive amount, enter the smaller of Sched-
110
$1,500 *$1,300* $0,500 *$500*
married filing joint return).
ule D, line 13 (considered as a positive amount) or
11
$1,500 $1,300 *$1,200**$200*
Schedule B, line 24 in Schedule D, line 14 and in
Line 22. Tax On Long-Term Capital
*denotes loss
Schedule B, line 25.
Gains
If in line 10 you entered amounts which in-
Multiply line 21 by .0525 and enter the result here
Line 15. Subtotal
crease the amounts reported from U.S. to Mass-
and in Form 1, line 24.
If line 13 is greater than “0,” subtract line 14 from
achusetts, for example, a long-term gain reported
line 13. If line 13 is less than “0,” combine lines 13
Note: If choosing the optional 5.85% tax rate,
as install ment sales for U.S. tax purposes but not
and 14.
multiply line 21 by .0585 and enter the result here
for Massachusetts, add the amount in line 10 to
and in Form 1, line 24.
the amount in line 9.
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