Sorry to have stated my question unclearly.

About 5-6 years ago, I had a large capital loss while in another state and have been carrying that loss forward in my federal returns since that time. Each year I have been able to offset any small gains I might have had still take in additional $3000 off from the loss. Despite this I still have a very substantial net carry-over loss

I have now been in MA for 4 years and have not been applying the carryover capital loss to my MA returns. However, this year I have a large capital gain due to sales of certain mutual funds (earned through a broker in a different state). Is it correct that I will not be able to avoid the large capital gain liability to MA due to the fact that my previous carryover loss was from a different state? Thank you.

My understanding of the Mass rules is that you can only carry forward a capital loss incurred while you were a resident of Massachusetts. So if you realized the capital loss prior to moving to Mass, you might not be able to use that loss to offset this year's capital gain on your Mass return.

Did you try to find this answer on the Mass Department of Revenue's site?

Zip Code: 01801

I cannot not seem to find any information that directly addresses this problem. However, would it not be a big penalty to moving if you cannot utilize prior carry-over capital losses for state taxes just because you moved?