1.200 Deductions from Gross Income

Deductions from Gross Income

1.200

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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.

M.G.L. c. 62, § 2(c)(3)

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.

M.G.L. c. 62, § 2(c)(2)

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.

IRC §§ 611, 613, and 613A

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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.

Previously, the deduction was available only for improvements to abandoned buildings located in Economic Opportunity Areas ("EOA"), as designated by the EACC. However, in 2016, the legislature enacted An Act Relative To Job Creation And Workforce Development, which eliminated the EOA requirement, and inserted the requirement that the EACC need only "certify" a project. These changes are effective for tax years beginning on or after January 1, 2019.

M.G.L. c. 62, § 3(B)(a)(10)

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