Governor Charles D. Baker's Budget Recommendation - House 1 Fiscal Year 2016

Search for line item

Go

Deductions from Gross Income


Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Deductions from Gross Income 0.1 0.1 0.1 0.1 0.1

Hide tax item language

item description amount
Deductions from Gross Income 0.1
1.201 Capital Gains Deduction
Long-term capital gains realized from the sale of collectibles (as defined by sec. 408 (m) of the IRC) are eligible for a 50% deduction from the 12% capital gains tax.

Origin:  M.G.L. c. 62, S. 2(c)(3)
Estimate:  N.A.
 
N.A.
1.202 Deduction of Capital Losses Against Interest and Dividend Income
Taxpayers may deduct up to $2,000 of net capital loss against interest and dividend income. This limit was reestablished in 2002.

Origin:  M.G.L. c. 62, S. 2(c)(2)
Estimate:  N.A.
 
N.A.
1.203 Excess Natural Resource Depletion Allowance
Individuals or investors in extractive industries (mining or drilling natural resources) may deduct a percentage of gross mining income as a depletion allowance. The allowance may exceed the actual cost of the resource property. For a more detailed description of this tax expenditure, see corporate excise item 2.204.

Origin:  IRC S. 613 and 613A as in effect January 1, 1985
Estimate:  Negligible
 
Negligible
1.204 Abandoned Building Renovation Deduction
Businesses renovating eligible buildings in Economic Opportunity Areas may deduct 10% of the cost of renovation from gross income. This deduction may be in addition to any other deduction for which the cost of renovation may qualify. To be eligible for this deduction, renovation costs must relate to buildings designated as abandoned by the Economic Assistance Coordinating Council.

Origin:  M.G.L. c. 62, S. 3(B)(a)(10)
Estimate:  $0.1
 
0.1

Key:

ORIGIN  
IRCFederal Internal Revenue Code (26 U.S.C.)
U.S.C United States Code
M.G.L. Massachusetts General Laws
Rev. Rul.; C.B. Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES All estimates are in $ millions.


Footnote(s):

1 1 This item and others citing this endnote cover employee fringe benefits. We accept as standard the following treatment of these benefits: the expense incurred by the employer in providing the benefit is properly deductible as a business expense and the benefit is taxed as compensation to the employee as if the employee had received taxable compensation and then used it to purchase the benefit. Of course, there are problems with this analysis. In some cases, the "benefit" is more a condition of employment than a true benefit. For example, a teacher required to have lunch in the school cafeteria may prefer to eat elsewhere even if the school lunch is free. On the other hand, in many cases the provision of tax-free employee benefits is clearly a substitution for taxable compensation.

2 2 This item and others citing this endnote cover contributory pension plans. The standard tax treatment of these plans is as follows: Component Standard Treatment Contributions: Made out of income that is currently taxed to employees. Investment Income: Taxed to the employee as "earned" income. Distributions from Pension Funds: Tax-free to the extent they are made out of dollars previously taxed to the employees as contributions or investment income. The non-standard treatment of contributions, investment income, or distributions as described in items 1.006, 1.101, 1.104, and 1.402, results in either nontaxation or deferrals of tax.


top of page link top of page