Minnesota § 290.9729 TAX ON PASSIVE INVESTMENT INCOME

Minnesota Statutes

§ 290.9729 — TAX ON PASSIVE INVESTMENT INCOME

Minnesota § 290.9729

PartVARIOUS STATE TAXES AND PROGRAMS

Ch. 290INCOME AND FRANCHISE TAXES

This text of Minnesota § 290.9729 (TAX ON PASSIVE INVESTMENT INCOME) 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. § 290.9729 (2026).

Text

Subdivision 1.Tax imposed. There is imposed a tax for the taxable year on the taxable income of an S corporation, if for the taxable year an S corporation has:

(1)subchapter C earnings and profits at the close of such taxable year; and

(2)gross receipts more than 25 percent of which are passive investment income. The tax is imposed at the rate prescribed by section290.06, subdivision 1. The terms "subchapter C earnings and profits," "passive investment income," and "gross receipts" have the same meanings as when used in sections 1362(d)(3) and 1375 of the Internal Revenue Code. Subd. 2.Taxable income. For the purposes of this section, taxable income means the lesser of:

(1)the amount of the S corporation's excess net passive income, as determined under section 1375 of the Internal Rev

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Subdivision 1.Tax imposed.
There is imposed a tax for the taxable year on the taxable income of an S corporation, if for the taxable year an S corporation has:
(1) subchapter C earnings and profits at the close of such taxable year; and
(2) gross receipts more than 25 percent of which are passive investment income.
The tax is imposed at the rate prescribed by section290.06, subdivision 1. The terms "subchapter C earnings and profits," "passive investment income," and "gross receipts" have the same meanings as when used in sections 1362(d)(3) and 1375 of the Internal Revenue Code.

Subd. 2.Taxable income.
For the purposes of this section, taxable income means the lesser of:
(1) the amount of the S corporation's excess net passive income, as determined under section 1375 of the Internal Revenue Code, subject to the provisions of sections290.0133to290.0135, that is allocable to this state under section290.17,290.191, or290.20; or
(2) the amount of the S corporation's federal taxable income, as determined under section 1374(d)(4) of the Internal Revenue Code, subject to the provisions of sections290.0133to290.0135, that is allocable to this state under section290.17,290.191, or290.20.

Subd. 3.Waiver of tax.
The tax imposed by this section shall be waived if the taxpayer receives a waiver for federal income tax purposes under section 1375(d) of the Internal Revenue Code.

Legislative History

1988 c 719 art 2 s 49; 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;2003 c 2 art 1 s 34;2016 c 158 art 3 s 26