Examples

The following examples illustrate the application of 830 CMR 62.5A.2:

Example 1 : Player A, a member of a professional athletic team, is a non-resident of Massachusetts. Player A's contract for such team requires A to report to such team's training camp and to participate in all exhibition, regular season, and playoff games. Player A has a contract which covers seasons that occur during year one/year two and year two/year three. Player A's contract provides that A receive $500,000 for the year one/year two season and $600,000 for the year two/year three season. Assuming player A receives $550,000 from such contract during taxable year two ($250,000 for one-half the year one/year two season and $300,000 for one-­half the year two/year three season), the portion of such compensation received by Player A for taxable year two, attributable to Massachusetts, is determined by multiplying the compensation Player A receives during the taxable year ($550,000) by a fraction, the numerator of which is the total number of duty days Player A spends rendering services for the team in Massachusetts during taxable year two (attributable to both the year one/year two season and the year two/year three season) and the denominator of which is the total number of Player A's duty days spent both within and without Massachusetts for the entire taxable year. Example 2 : Player B, a member of a professional athletic team, is a non-resident of Massachusetts. During the season, B is injured and is unable to render services for B's team. While B is undergoing medical treatment at a clinic in Massachusetts, B's team, which is not based in Massachusetts, travels to Massachusetts for a game. The number of days B's team spends in Massachusetts for practice, games, meetings, etc., while B is present at such clinic in Massachusetts shall not be considered duty days spent in Massachusetts for Player B for that tax year for purposes of this regulation, 830 CMR 62.5A.2, but such days are considered to be included within total duty days spent within and without Massachusetts. Example 3 : Player B, a member of a professional athletic team, is a non-resident of Massachusetts. During the season, B is injured and is unable to render services for B's team. B performs rehabilitation exercises at the facilities of B's team in Massachusetts as well as at personal facilities in Massachusetts. The days B performs rehabilitation exercises in the facilities of B's team are considered duty days spent in Massachusetts for Player B for that tax year for purposes of 830 CMR 62.5A.2. However, the days B spends in private facilities in Massachusetts shall not be considered duty days spent in Massachusetts for Player B for that tax year, though such days are considered to be included within total duty days spent within and without Massachusetts. Example 4 : Player C, a member of a professional athletic team, is a non-resident of Massachusetts. During the season, C travels to Massachusetts to participate in the annual all-star game as a representative of C's team. The number of days C spends in Massachusetts for practice, the game, meetings, etc., shall be considered duty days spent in Massachusetts for Player C for that tax year for purposes of this regulation 830 CMR 62.5A.2, as well as included within total duty days spent within and without Massachusetts. Example 5 : Assume the same facts as given in Example 4, except that Player C is not participating in the all-star game and is not rendering services for C's team in any manner. Player C is traveling to and attending such game solely as a spectator. The days Player C spends in Massachusetts for the game are not considered to be duty days spent in Massachusetts. However, those days are included within total duty days spent both within and without Massachusetts. Example 6 : Player D, a member of a professional athletic team, is a non-resident of Massachusetts. During the pre-season, D travels to Massachusetts to participate in a training camp which D's team conducts in Massachusetts. D performs no further services in Massachusetts. D's team does not play any regular season or playoff games in Massachusetts. The days D spends in Massachusetts at the team's training camp are considered to be duty days spent in Massachusetts for Player D for that taxable year.