daemon@decwrl.UUCP (12/22/83)
From: In.from.the.ENET, sent by Ed Featherston <roll::featherston>
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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
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