[net.invest] MASS. TAX ITEMS FOR MASS. INVESTORS

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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