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 nontaxed capital gains exceeding $1,000,000 will be considered an addition to an individual's federal adjusted gross income.

Furthermore, the bill proposes a new section, 290.055, which defines nontaxed capital gains and outlines how they are determined. It specifies that a taxpayer's nontaxed capital gains will be calculated based on the gains from nontaxed capital assets owned at the time of 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. All provisions in the bill are set to take effect for taxable years beginning after December 31, 2025.

Statutes affected:
Introduction: 289A.19, 290.0131