Will I pay tax in Massachusetts on a 1031 tax exchange?

Q: I sold my three-family house last year by using a 1031 tax exchange. I know that I will not be taxed federally but what about the Massachusetts state tax? —Teresa, South Boston

The following answer was provided by the Mass. Society of CPAs.

A: Mass will follow the federal rules.

The following answer was provided by - Mark Misselbeck, CPA, Levine Katz Nannis & Solomon PC, Needham.

A: Congratulations! Provided you have fulfilled all of the requirements for deferral of taxes involved in a Section 1031 exchange, Massachusetts follows federal law and therefore will not tax any gain that would otherwise be reportable on your return. Remember to prepare and file Form 8824 with your return for the year of exchange.