I would say any loss that was not used to offset income in another state (i.e. New Jersey) would be preserved to use upon return to Mass. If not already done, I would file a 2024 MA tax return that shows the carryover. If the situation arises where it can be used, use it. Going back and filing 2022 and 2023 just to show the carryforward wouldn't be a bad idea, although I don't know if it is necessary. And whatever the rules are, they should apply to both long-term and short-term loss carryforwards.
This is an "inside baseball" type of state tax question. I suggest you or the "the individual" you are referring to consult a MA tax professional that has dealt with the situation.
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