Business & farm

Hi Kathryn:

You helped me earlier this year regarding  rental property I sold in FL. TT computed the gain correctly I believe on Fed return, but when it came to Massachusetts return, it handled it differently

On the MA return, it took the gain of 56,211 from the Fed return, and then "adjusted" it for MA. The nature of this adjustment is a mystery. I spent 1.5 hours on phon with TT agent, and they could not help. 

 

TT itself reports it on a report "Fed/State Adj" - it takes the Fed reported gain 56,211, makes a minor adjustment for differences in  

(I cannot paste the form in here but the text below is taken from that form)

 

(D) Accumulated Depreciation 

   (1) State 97,222

   (2) Federal 98,860

a difference of -1,638

and then adds 

   (F) Other adjustments 51,520

 

Now it is the 51,520 number that  TT, nor I, nor the TT human agent - can explain. 

 

I printed out the entire return as a PDF and searched and found the 51,520 appears only once - so its origin remains  deep mystery. But it adds a lot to my tax liability

 

I have read a lot about Fed/MA adjustments related to sale of rental property and from that it seems MA and Fed would treat the gain in the same way (excepting that minor difference in depreciation). 

 

And insights to this mystery will be appreciated. 

Thanks

Stoddard