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 exceeding $1,000,000, as specified in the newly added subdivision 21 of section 290.0131. The bill also establishes a new section, 290.055, which defines nontaxed capital gains and outlines how these gains are to be calculated based on the value of capital assets owned by a taxpayer at the time of their death.

The effective date for these changes is set for taxable years beginning after December 31, 2025. The bill aims to clarify the treatment of nontaxed capital gains in the context of estate taxation, ensuring that taxpayers are aware of their obligations and the potential for extended filing deadlines in relation to these gains.

Statutes affected:
Introduction: 289A.19, 290.0131