November 2, 1982

Section 121 of the federal Internal Revenue Code permits a one-time exclusion from gross income of capital gain from sale of a principal residence by an individual who has attained age 55. The federal Economic Recovery Tax Act of 1981 (P.L. 97-34) raised the maximum amount of the exclusion from $100,000 to $125,000 for qualifying residences sold after July 20, 1981.

You inquire whether the maximum exclusion has been increased for Massachusetts income tax purposes.

Massachusetts gross income is federal gross income, with certain modifications, determined according to the Internal Revenue Code as amended on November 6, 1978 and in effect for the taxable year. (G.L. c. 62, ss. 1, 2).

The maximum exclusion from gross income of gain from sale of a principal residence by a taxpayer 55 years of age or older remains $100,000 for Massachusetts personal income tax purposes.

Very truly yours,

/s/L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

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LR 82-105