Question

Massachusetts capital gains/losses for non-resident

Forum|Forum|1 year ago
February 24, 2025
1 reply
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Hi,

I had ~18 stock transactions in 2024 and therefore I have a gain or loss for each One stock was for the company I work for in MA. The ~17 others were for various publicly traded companies. Some of these companies have physical locations in MA, even though they are not headquartered in MA (ex: Procter & Gamble), some have no physical location in MA (as far as I can determine) and one company is headquartered in MA. My question is: do I need to identify all the companies for which there is NOT a physical presence in MA and then marked the gain/loss for those companies as "non-Massachusetts sourced"? Conversely, the gain/loss for all the companies that have a physical presence in MA are therefore Massachusetts sourced, correct?

Thank you.

M

maglib

@dbdd3

I can not give you the answer as it depends on if those stock transactions were applicable to your job such as options or grants? Just because a company is located in MA, will not mean it is MA source. If you work at the company and it was some type of "wages/ income as a result of that employment or business venture" then you may need to allocate the gains too....

What portion was a result of work vs. what portion was personal investment decision holding allocation?

This will be a helpful resource.

https://www.mass.gov/regulations/830-CMR-625a1-non-resident-income-tax#-3-income-subject-to-massachusetts-income-tax

**I don't work for TT. Just trying to help. All the best. ***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.

D

dbdd3Author

Hi,

Thank you for the response.

All transactions were with stocks I own (no grants, options, etc.). Even the company I work for in MA (but not headquartered there) I outright own stock and I sold some. So the gain I received from selling stock in the company I work for was not "wages/ income as a result of that employment or business venture".

Q: "What portion was a result of work vs. what portion was personal investment decision holding allocation?"

A: 100% was personal investment decision holding allocation (i.e. transactions of stocks I own).

M

maglib

@dbdd3 sorry I have been away. They would all not be sourced to Massachussetts then unless you lived there during the time of sale.

Do note like most states, they tax you at the effective tax rate of all your income, but, then apportion that tax to only Mass sourced income.

Good luck.

**I don't work for TT. Just trying to help. All the best. ***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.