1.1 A bill for an act
1.2 relating to taxation; income; requiring an addition for deemed capital gains on
1.3 certain assets of a decedent; amending Minnesota Statutes 2024, sections 289A.19,
1.4 by adding a subdivision; 290.0131, by adding a subdivision; proposing coding for
1.5 new law in Minnesota Statutes, chapter 290.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 289A.19, is amended by adding a subdivision
1.8to read:
1.9 Subd. 8.Returns including nontaxed capital gains.The commissioner must grant an
1.10automatic extension of 275 days to file an individual income tax return that includes an
1.11amount added to an individual's federal adjusted gross income under section 290.0131,
1.12subdivision 21. Where good cause exists, the commissioner may grant an extension of an
1.13additional 180 days for filing this return.
1.14 EFFECTIVE DATE.This section is effective for taxable years beginning after December
1.1531, 2025.
1.16 Sec. 2. Minnesota Statutes 2024, section 290.0131, is amended by adding a subdivision
1.17to read:
1.18 Subd. 21.Nontaxed capital gains.The amount of nontaxed capital gains as determined
1.19under section 290.055 that exceeds $1,000,000 is an addition.
1.20 EFFECTIVE DATE.This section is effective for taxable years beginning after December
1.2131, 2025.
1Sec. 2.
REVISOR EAP/MI 25-0386202/13/25
State of Minnesota
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HOUSE OF REPRESENTATIVES
H. F. No. 1357
NINETY-FOURTH SESSION 2.1 Sec. 3. [290.055] NONTAXED CAPITAL GAINS.
2.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
2.3the meanings given.
2.4 (b) "Federal gross estate" means the gross estate of a decedent as required to be valued
2.5and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
2.6 (c) "Nontaxed capital asset" means a capital asset as defined in section 1221(a) of the
2.7Internal Revenue Code, but does not include land classified as class 2a agricultural homestead
2.8as determined under chapter 273.
2.9 Subd. 2.Determination of nontaxed capital gains.A taxpayer's nontaxed capital gains
2.10equals the sum of the gains on each nontaxed capital asset owned by a taxpayer on the date
2.11of the taxpayer's death. The amount of each gain is equal to the amount that would be
2.12required to be included in the taxpayer's federal adjusted gross income if the asset was sold
2.13on the date of the taxpayer's death at a value equal to the value of the asset if it was includable
2.14in the decedent's federal gross estate.
2.15 EFFECTIVE DATE.This section is effective for taxable years beginning after December
2.1631, 2025.
2Sec. 3.
REVISOR EAP/MI 25-0386202/13/25