Ordinarily, for federal income tax purposes,
capital gains are taxed at the time appreciated
property is transferred to a new owner.
However, the tax on capital gains on property
transferred by gift is deferred until the new
owner sells the property. If the new owner
dies holding the gifted property, the tax is
never imposed (see Evaluation Summary
1.022). Massachusetts generally follows the
federal rules for purposes of determining
taxable capital gains. This conformity results
in a deferral and potential exclusion of tax on
capital gains and therefore constitutes a state
tax expenditure.

Origin: IRC §§ 1001, 1015

Item Number
FY2020
FY2021
FY2022
FY2023
FY2024
1.106
23.9
37.2
36.8
32.7
35.8
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