This bill amends Minnesota tax law to introduce provisions regarding deemed capital gains on certain assets of a decedent. Specifically, it adds a new subdivision to Minnesota Statutes 2024, section 289A.19, which mandates that the commissioner grant an automatic extension of 275 days for filing individual income tax returns that include an addition for nontaxed capital gains. Additionally, it allows for an extension of up to 180 days if good cause is shown. The bill also introduces a new subdivision to section 290.0131, stating that any nontaxed capital gains exceeding $1,000,000 will be considered an addition to an individual's federal adjusted gross income.

Furthermore, the bill proposes new coding in Minnesota Statutes, chapter 290, to define and determine nontaxed capital gains. It specifies that nontaxed capital gains are calculated based on the gains from nontaxed capital assets owned by a taxpayer at the time of their death, with the gain amount reflecting what would be included in the taxpayer's federal adjusted gross income if the asset were sold at its value on the date of death. Both the new provisions and definitions are set to take effect for taxable years beginning after December 31, 2025.

Statutes affected:
Introduction: 289A.19, 290.0131