MA 2021 Schedule D Part 1. 10a. Massachusetts adjustments

[aeolus]

2021 Massachusetts Personal Income Tax form Schedule D Long-Term Capital Gains and Losses
Turbotax says:
Enter a negative amount if:
- your Massachusetts gain is less than your federal gain
Enter a positive amount if:
- your Massachusetts gain is more than your federal gain

However, when I enter a positive number, which means I have more MA gain than Federal, Turbotax calculates that I owe less tax to MA. How can that be possible?

Is there a bug in Turbotax?

[MaryK4]

A positive entry reduces a gain or increases a loss- this means that your gain decreases hence your tax lowers.

Massachusetts has adopted basis adjustment rules to take into account differences between Massachusetts and federal tax laws.

[gkheyf]

Hello @aeolus , were you able to resolve this issue?  If so, could you please let me know what you figured out?

Also, could you please let me know how you determined which gains and losses to adjust?  I'm currently looking at TIR88-7.  Was it by a close reading of that law?  Or was there something else to consider?

Any info would be appreciated, thanks.

[AmyC]

The  2023 Form 1 Instructions states on page 28:

Line 10a. Massachusetts Adjustments 

Enter any differences between the gains or losses reportable for Massachusetts tax purposes and the U.S. gains or losses reported in Massachusetts Schedule D, lines 1 through 8 and on line 10c. Differences include: 

◗ Pre-1996 installment sales classified as ordinary income for Massachusetts purposes; 

◗ Long-term capital gains or losses from transactions reported as installment sales for U.S. income tax purposes but not for Massachusetts (Note: Income and gain transactions should be reported as positive and loss transactions should be reported as negative in line 10a.); and 

◗ Massachusetts has adopted basis adjustment rules to take into account differences between Massachusetts and federal tax laws (Note: Massachusetts basis adjustment increases should be reported as negative and Massachusetts basis adjustment decreases should be reported as positive in line 10a).