Massachusetts Rent Deduction - Did You Know?

William Delaney, EA
Westwood, MA

Massachusetts rent payers are allowed a limited deduction for rent paid on their primary residence, as we all know.  See MA Form 1, line 14.  But, the devil is always in the details.  Did you know…

“Rent includes the amount paid for heat, hot water, gas, electricity, furniture or parking, if the landlord makes no separate charge for these items.”

“Rent may include the rental of a mobile home or of a mobile home site.”

“The rental deduction may only be taken for the taxable year in which the rent was paid.”  “Rent does not include amounts paid as a security deposit or amounts paid for the last month’s rent…”

Amount of deduction allowed (has not changed since 2001) – 50% of the rent paid, up to a maximum of $3,000 (i.e. $6,000 x 50%).

See 830 CMR 62.3.1 – Rent Deduction.