I have a capital gain on a property I own in florida. I incurred some interest expense related to the property. Apparently MA tax law does not allow me to deduct the interest expense against the capital gain (My accountant has verified this). So, My question is what happens to the interest expense? Can I use it in the future against some MA income or what? Does it hust disappear? Any help would be appreciated. Where can I get access to a comprehensive set of MA tax code? Thanks
Stand by to disregard my previous message (maybe Dick can delete it for me). I answered on the premise that you were a nonresident of MA, but evidently that is not the case. If you are a MA resident, I believe the interest expense would be allowable as a deduction against other income, assuming it is deductible for federal purposes (as investment interest expense, perhaps). If you have no other income, of course, there would be nothing to deduct it from, and it would give you no tax benefit. The Massachusetts form instructions will probably answer most of your questions. You can find a link to Massachusetts tax forms and instructions at
The foregoing is intended for educational purposes only and does not constitute legal or professional advice.
Sorry Katie. The only interest expense one can ever deduct in MA is certain student loan interest within 60 months of repayment and business interest expense either on sch c or sch e. Investment interest expense is never deductible under any circumstances.
-- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062
Thanks, David. I didn't know that. Massachusetts is so weird . Katie
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.