What is the Massachusetts tax treatment of long-term capital gains for tax year 2008?
Part (C) gains and losses except for long term gains on collectibles and pre-1996 installment sales represent transactions from the sale or exchange of assets held for more than one year. The tax rate on Part (C) income is 5.3 percent. Gains from installment sales which took place between January 1, 1996 and April 30, 2002, inclusive will be taxed in accordance with the existing rules and rates at the time of the sale (i.e. the six holding periods and corresponding tax rates ranging from 5 percent to 0 percent as well as the offsetting rules will still be applicable). You may refer to TIR 99-17: Capital Gains and Losses: Massachusetts Tax Law Changes Retroactive to 1996. Taxpayers need to use schedule D-IS to report the above-referenced transactions. Starting with taxable year 2002, the amount of the combined long term and short term capital losses which can offset Part (A) interest and dividend income cannot exceed $2,000. Additional detailed information can be found in TIR 02-21: Cap
