Massachusetts Panel Lets State Tax Nonresident’s Stock Sale Gain

Massachusetts can tax a nonresident’s capital gains on stocks that were acquired when he started a company in the state but sold after he moved to New Hampshire, a state appeals court affirmed Thursday.

“We conclude that the board had substantial evidence on which it based its determination that Welch’s gain from the sale of his AcadiaSoft shares was derived from his own trade or business of software development,” Justice Marguerite T. Grant wrote for the Massachusetts Appeals Court.

Craig Welch asked the court to reject a $300,000 Massachusetts income tax assessment on 100% of the capital gain he made ...