"...can I use the 1M of carry over loss to entirely offset my 400k or does MA have a cap..."
Massachusetts allows losses to offset any amount of gain (offset limited to amount of gain) and to offset up to $2,000 of interest and dividends. Capital losses cannot be used against other ordinary income.
https://www.mass.gov/info-details/differences-between-ma-and-federal-tax-law-for-personal-income
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
