Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site decwrl.UUCP Path: utzoo!linus!decvax!decwrl!daemon From: daemon@decwrl.UUCP Newsgroups: net.invest Subject: MASS. TAX ITEMS FOR MASS. INVESTORS Message-ID: <4695@decwrl.UUCP> Date: Thu, 22-Dec-83 09:08:43 EST Article-I.D.: decwrl.4695 Posted: Thu Dec 22 09:08:43 1983 Date-Received: Sat, 24-Dec-83 01:53:51 EST Sender: daemon@decwrl.UUCP Organization: DEC Western Research Lab, Los Altos, CA Lines: 72 From: In.from.the.ENET, sent by Ed Featherston Begin Forwarded Message: ------------------------------------------- Newsgroup : net.invest >From : GOLD::DZEKEVICH Organization : Digital Equipment Corp. SUBJECT: MASS. TAX ITEMS FOR MASS. INVESTORS MASS. TAX ITEMS OF INTEREST TO INVESTORS Joe Dzekevich / Digital Equipment 21 DEC 83 I passed the following list to a investment class at Clark. Many times we forget state tax implications when we invest. For you non-Mass. residents: please delete. o Under the new R.E.A.P. package, the capital gains exclusions have been eliminated starting in 1984. In addition, all non-corporations must follow the federal A.C.R.S. method of depreciation retro-active to January 1, 1983. o Investment clubs must be registered as partnerships unless they include some out-of-state members. o There is no income deduction for I.R.A. deposits. I.R.A. interest and earnings, however, do accumulate tax deferred. The end result works something like an annuity. o There is no such thing as a Subchapter S corporation in Mass. All Mass. corporations are standard corporations. Subchapter S incomes and losses have to be backed out of your individual income taxes. o All investment income and out-of-state bank interest are taxed at 10% and not at 5%. o Mass. does not tax Mass. municipal and Puerto Rico municipal bond incomes. o Mass. inheritance taxes are graduated, and include a $30,000 deduction. o Mass. has no minimum wealth requirements in order to invest in limited partnerships. o Mass. does not recognize the educational deduction taken on federal form 2106. o Mass. does not recognize the federal utility dividend exclusion. These dividends are fully taxed in the year received. o Use a Form 1-ES (like a 1040-ES) to file estimated taxes. o Mass. follows the older federal installment sales rules. (UUCP) {decvax, ucbvax, allegra}!decwrl!rhea!gold!dzekevich (ARPA) decwrl!rhea!gold!dzekevich@Berkeley decwrl!rhea!gold!dzekevich@SU-Shasta ------------------------------------------- End Forwarded Message