Friday, January 4, 2019

Massachusetts Differences for 2018 - Did You Know?

Alimony – MA did NOT adopt the recent federal changes to alimony (for agreements on or after 12/31/18). It is income to the recipient and a deduction for the payer even if NOT reportable on the federal tax return. Not likely to be an issue until tax year 2019.

Like-kind-exchange - For federal purposes, like-kind exchanges now apply only to real property. For MA purposes, the prior law is still in place. Example: a trade-in of a business vehicle is a like-kind exchange. Gain/loss is computed and rolled into the cost of the replacement vehicle (MA tax treatment). However, the gain is now currently recognized for federal tax purposes.

Sec. 199A Qualified Business Income Deduction - Not a deduction on the MA return.

Sec. 217 Moving Expense Deduction – Not allowed for federal purposes; still ALLOWED for MA purposes. MA has designed a worksheet (found in the instructions for form MA-1) which will calculate the allowable deduction.

Form 2106 Expense Deductions – Gone for BOTH federal and MA purposes.

Your Editor’s take from attending a recent MA update by Mass. Taxpayer Advocate
Dana Ackerman.

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