Tax Rate Applicable to Installment Sale Gain

Official source

Massachusetts gain included in income pursuant to an installment sale under 830 CMR 62.63.1(4)(a) and (5)(a) is subject to the Massachusetts personal income tax rate applicable to the particular tax year in which such gain is included in income, except as may otherwise be expressly provided by statute. Thus, the rate applicable to income included in the year of the sale may differ from the rate applicable to income attributable to installments received in subsequent years in the event of a statutory change to the personal income tax rates.

(9) Nonresidents; Interest on Installment Obligation

(a) A nonresident taxpayer who receives installment sale treatment for Massachusetts income tax purposes under 830 CMR 62.63.1(4)(a) and (5)(a) with respect to gain recognized on the sale of Massachusetts real estate or other property subject to tax in accordance with M.G.L. c. 62, § 5A shall be subject to Massachusetts tax with respect to all gain and other income, including interest and original issue discount, recognized on account of such transaction in all applicable tax years. (b) A resident taxpayer who receives installment sale treatment for Massachusetts income tax purposes with respect to gain recognized on any installment sale, and who becomes a nonresident in a tax year subsequent to the tax year of the transaction, shall be subject to Massachusetts tax with respect to all gain and other income, including interest and original issue discount recognized on account of such transactions in all applicable tax years.

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Tax Rate Applicable to Installment Sale Gain

Official source

Massachusetts gain included in income pursuant to an installment sale under 830 CMR 62.63.1(4)(a) and (5)(a) is subject to the Massachusetts personal income tax rate applicable to the particular tax year in which such gain is included in income, except as may otherwise be expressly provided by statute. Thus, the rate applicable to income included in the year of the sale may differ from the rate applicable to income attributable to installments received in subsequent years in the event of a statutory change to the personal income tax rates.

(9) Nonresidents; Interest on Installment Obligation

(a) A nonresident taxpayer who receives installment sale treatment for Massachusetts income tax purposes under 830 CMR 62.63.1(4)(a) and (5)(a) with respect to gain recognized on the sale of Massachusetts real estate or other property subject to tax in accordance with M.G.L. c. 62, § 5A shall be subject to Massachusetts tax with respect to all gain and other income, including interest and original issue discount, recognized on account of such transaction in all applicable tax years. (b) A resident taxpayer who receives installment sale treatment for Massachusetts income tax purposes with respect to gain recognized on any installment sale, and who becomes a nonresident in a tax year subsequent to the tax year of the transaction, shall be subject to Massachusetts tax with respect to all gain and other income, including interest and original issue discount recognized on account of such transactions in all applicable tax years.