Minnesota § 290.491 TAX ON GAIN; DISCHARGE IN BANKRUPTCY

Minnesota Statutes

§ 290.491 — TAX ON GAIN; DISCHARGE IN BANKRUPTCY

Minnesota § 290.491

PartVARIOUS STATE TAXES AND PROGRAMS

Ch. 290INCOME AND FRANCHISE TAXES

This text of Minnesota § 290.491 (TAX ON GAIN; DISCHARGE IN BANKRUPTCY) is published on Counsel Stack Legal Research, covering Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Minn. Stat. § 290.491 (2026).

Text

(a)Any tax due under this chapter on a gain realized on a forced sale pursuant to foreclosure of a mortgage or other security interest in agricultural production property, other real property, or equipment, used in a farm business that was owned and operated by the taxpayer shall be a dischargeable debt in a bankruptcy proceeding under United States Code, title 11, section 727.

(b)Income realized on a sale or exchange of agricultural production property, other real property, or equipment, used in a farm business that was owned and operated by the taxpayer shall be exempt from taxation under this chapter, if the taxpayer was insolvent at the time of the sale and the proceeds of the sale were used solely to discharge indebtedness secured by a mortgage, lien, or other security interest on t

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(a) Any tax due under this chapter on a gain realized on a forced sale pursuant to foreclosure of a mortgage or other security interest in agricultural production property, other real property, or equipment, used in a farm business that was owned and operated by the taxpayer shall be a dischargeable debt in a bankruptcy proceeding under United States Code, title 11, section 727.
(b) Income realized on a sale or exchange of agricultural production property, other real property, or equipment, used in a farm business that was owned and operated by the taxpayer shall be exempt from taxation under this chapter, if the taxpayer was insolvent at the time of the sale and the proceeds of the sale were used solely to discharge indebtedness secured by a mortgage, lien, or other security interest on the property sold. For purposes of this section, "insolvent" means insolvent as defined in section 108(d)(3) of the Internal Revenue Code. This paragraph applies only to the extent that the gain is includable in federal taxable income or in the computation of the alternative minimum taxable income under section290.091for purposes of the alternative minimum tax. The amount of the exemption is limited to the excess of the taxpayer's (1) liabilities over (2) the total assets and any exclusion claimed under section 108 of the Internal Revenue Code determined immediately before application of this paragraph.
(c) For purposes of this section, any tax due under this chapter specifically includes, but is not limited to, tax imposed under sections290.02and290.03on income derived from a sale or exchange, whether constituting gain, discharge of indebtedness or recapture of depreciation deductions, or the alternative minimum tax imposed under section290.091.

Legislative History

1Sp1985 c 14 art 1 s 50;1986 c 398 art 21 s 4;1Sp1986 c 1 art 1 s 9;1987 c 268 art 1 s 102,126;1988 c 719 art 1 s 16; art 3 s 12;1989 c 28 s 25;1990 c 604 art 2 s 16;1991 c 291 art 6 s 46;1992 c 511 art 6 s 19;1993 c 375 art 8 s 14;1994 c 587 art 1 s 24