| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; income; requiring an addition for deemed capital gains on |
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| 3 | 3 | | 1.3 certain assets of a decedent; amending Minnesota Statutes 2024, sections 289A.19, |
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| 4 | 4 | | 1.4 by adding a subdivision; 290.0131, by adding a subdivision; proposing coding for |
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| 5 | 5 | | 1.5 new law in Minnesota Statutes, chapter 290. |
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| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 7 | 7 | | 1.7 Section 1. Minnesota Statutes 2024, section 289A.19, is amended by adding a subdivision |
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| 8 | 8 | | 1.8to read: |
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| 9 | 9 | | 1.9 Subd. 8.Returns including nontaxed capital gains.The commissioner must grant an |
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| 10 | 10 | | 1.10automatic extension of 275 days to file an individual income tax return that includes an |
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| 11 | 11 | | 1.11amount added to an individual's federal adjusted gross income under section 290.0131, |
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| 12 | 12 | | 1.12subdivision 21. Where good cause exists, the commissioner may grant an extension of an |
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| 13 | 13 | | 1.13additional 180 days for filing this return. |
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| 14 | 14 | | 1.14 EFFECTIVE DATE.This section is effective for taxable years beginning after December |
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| 15 | 15 | | 1.1531, 2025. |
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| 16 | 16 | | 1.16 Sec. 2. Minnesota Statutes 2024, section 290.0131, is amended by adding a subdivision |
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| 17 | 17 | | 1.17to read: |
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| 18 | 18 | | 1.18 Subd. 21.Nontaxed capital gains.The amount of nontaxed capital gains as determined |
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| 19 | 19 | | 1.19under section 290.055 that exceeds $1,000,000 is an addition. |
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| 20 | 20 | | 1.20 EFFECTIVE DATE.This section is effective for taxable years beginning after December |
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| 21 | 21 | | 1.2131, 2025. |
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| 22 | 22 | | 1Sec. 2. |
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| 23 | 23 | | REVISOR EAP/MI 25-0386202/13/25 |
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| 24 | 24 | | State of Minnesota |
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| 25 | 25 | | This Document can be made available |
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| 26 | 26 | | in alternative formats upon request |
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| 27 | 27 | | HOUSE OF REPRESENTATIVES |
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| 28 | 28 | | H. F. No. 1357 |
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| 29 | 29 | | NINETY-FOURTH SESSION 2.1 Sec. 3. [290.055] NONTAXED CAPITAL GAINS. |
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| 30 | 30 | | 2.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
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| 31 | 31 | | 2.3the meanings given. |
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| 32 | 32 | | 2.4 (b) "Federal gross estate" means the gross estate of a decedent as required to be valued |
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| 33 | 33 | | 2.5and otherwise determined for federal estate tax purposes under the Internal Revenue Code. |
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| 34 | 34 | | 2.6 (c) "Nontaxed capital asset" means a capital asset as defined in section 1221(a) of the |
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| 35 | 35 | | 2.7Internal Revenue Code, but does not include land classified as class 2a agricultural homestead |
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| 36 | 36 | | 2.8as determined under chapter 273. |
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| 37 | 37 | | 2.9 Subd. 2.Determination of nontaxed capital gains.A taxpayer's nontaxed capital gains |
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| 38 | 38 | | 2.10equals the sum of the gains on each nontaxed capital asset owned by a taxpayer on the date |
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| 39 | 39 | | 2.11of the taxpayer's death. The amount of each gain is equal to the amount that would be |
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| 40 | 40 | | 2.12required to be included in the taxpayer's federal adjusted gross income if the asset was sold |
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| 41 | 41 | | 2.13on the date of the taxpayer's death at a value equal to the value of the asset if it was includable |
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| 42 | 42 | | 2.14in the decedent's federal gross estate. |
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| 43 | 43 | | 2.15 EFFECTIVE DATE.This section is effective for taxable years beginning after December |
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| 44 | 44 | | 2.1631, 2025. |
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| 45 | 45 | | 2Sec. 3. |
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| 46 | 46 | | REVISOR EAP/MI 25-0386202/13/25 |
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