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 Mass instructions see Page 11-12 There is NOTHING within Mass directives nor instructions allowing MTM for Personal tax returns.   You are correct for IRS definitions of trader/ business can be seen in TC429   Non-Conformity: MA does not automatically adopt the federal section 475(f) MTM election. Reporting Differences: While federal returns report MTM on Form 4797, Massachusetts generally treats securities as capital assets, meaning traders may need to reconcile this difference on their Massachusetts tax filing, treating losses as capital losses rather than ordinary losses. Trader Status Definition: Similar to federal rules, Massachusetts evaluates if taxpayers are active traders (seeking profit from daily market movements with substantial activity) or investors. Capital Gains Tax: Massachusetts taxes capital gains based on holding periods, often at a flat rate, regardless of the MTM election used on the federal return.  Trader vs. Investor Status in Massachusetts for EXPENSES:  Trader (Business): Engaged in trading with "continuity, regularity, and frequency". According to a 2011 JD Supra article, a trader focuses on short-term market movements. Investor: Focuses on long-term capital appreciation, dividends, or interest. Key Distinction: The 2011 Lexology Mass Report  notes that Massachusetts tax authorities consider whether a fund is "seeking to profit from daily market movements" (trader) versus holding for investment. Tax Implications: As detailed in this KPMG Investor vs Trader traders may deduct expenses under IRC § 162, while investors are limited to IRC § 212 deductions.