HF 265

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to individual income taxation; allowing the 
  1.3             deduction for wagering losses in computing alternative 
  1.4             minimum tax; amending Minnesota Statutes 1998, section 
  1.5             290.091, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 290.091, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [DEFINITIONS.] For purposes of the tax imposed by 
  1.10  this section, the following terms have the meanings given: 
  1.11     (a) "Alternative minimum taxable income" means the sum of 
  1.12  the following for the taxable year: 
  1.13     (1) the taxpayer's federal alternative minimum taxable 
  1.14  income as defined in section 55(b)(2) of the Internal Revenue 
  1.15  Code; 
  1.16     (2) the taxpayer's itemized deductions allowed in computing 
  1.17  federal alternative minimum taxable income, but excluding: 
  1.18     (i) the Minnesota charitable contribution deduction; 
  1.19     (ii) the medical expense deduction; 
  1.20     (iii) the casualty, theft, and disaster loss deduction; and 
  1.21     (iv) the impairment-related work expenses of a disabled 
  1.22  person; and 
  1.23     (v) the wagering loss deduction; 
  1.24     (3) for depletion allowances computed under section 613A(c) 
  1.25  of the Internal Revenue Code, with respect to each property (as 
  2.1   defined in section 614 of the Internal Revenue Code), to the 
  2.2   extent not included in federal alternative minimum taxable 
  2.3   income, the excess of the deduction for depletion allowable 
  2.4   under section 611 of the Internal Revenue Code for the taxable 
  2.5   year over the adjusted basis of the property at the end of the 
  2.6   taxable year (determined without regard to the depletion 
  2.7   deduction for the taxable year); 
  2.8      (4) to the extent not included in federal alternative 
  2.9   minimum taxable income, the amount of the tax preference for 
  2.10  intangible drilling cost under section 57(a)(2) of the Internal 
  2.11  Revenue Code determined without regard to subparagraph (E); 
  2.12     (5) to the extent not included in federal alternative 
  2.13  minimum taxable income, the amount of interest income as 
  2.14  provided by section 290.01, subdivision 19a, clause (1); 
  2.15     (6) amounts added to federal taxable income as provided by 
  2.16  section 290.01, subdivision 19a, clauses (5), (6), and (7); 
  2.17     less the sum of the amounts determined under the following 
  2.18  clauses (1) to (4): 
  2.19     (1) interest income as defined in section 290.01, 
  2.20  subdivision 19b, clause (1); 
  2.21     (2) an overpayment of state income tax as provided by 
  2.22  section 290.01, subdivision 19b, clause (2), to the extent 
  2.23  included in federal alternative minimum taxable income; 
  2.24     (3) the amount of investment interest paid or accrued 
  2.25  within the taxable year on indebtedness to the extent that the 
  2.26  amount does not exceed net investment income, as defined in 
  2.27  section 163(d)(4) of the Internal Revenue Code.  Interest does 
  2.28  not include amounts deducted in computing federal adjusted gross 
  2.29  income; and 
  2.30     (4) amounts subtracted from federal taxable income as 
  2.31  provided by section 290.01, subdivision 19b, clauses (11) and 
  2.32  (12). 
  2.33     In the case of an estate or trust, alternative minimum 
  2.34  taxable income must be computed as provided in section 59(c) of 
  2.35  the Internal Revenue Code. 
  2.36     (b) "Investment interest" means investment interest as 
  3.1   defined in section 163(d)(3) of the Internal Revenue Code. 
  3.2      (c) "Tentative minimum tax" equals seven percent of 
  3.3   alternative minimum taxable income after subtracting the 
  3.4   exemption amount determined under subdivision 3. 
  3.5      (d) "Regular tax" means the tax that would be imposed under 
  3.6   this chapter (without regard to this section and section 
  3.7   290.032), reduced by the sum of the nonrefundable credits 
  3.8   allowed under this chapter.  
  3.9      (e) "Net minimum tax" means the minimum tax imposed by this 
  3.10  section. 
  3.11     (f) "Minnesota charitable contribution deduction" means a 
  3.12  charitable contribution deduction under section 170 of the 
  3.13  Internal Revenue Code to or for the use of an entity described 
  3.14  in section 290.21, subdivision 3, clauses (a) to (e).  When the 
  3.15  federal deduction for charitable contributions is limited under 
  3.16  section 170(b) of the Internal Revenue Code, the allowable 
  3.17  contributions in the year of contribution are deemed to be first 
  3.18  contributions to entities described in section 290.21, 
  3.19  subdivision 3, clauses (a) to (e). 
  3.20     Sec. 2.  [EFFECTIVE DATE.] 
  3.21     Section 1 is retroactively effective for taxable years 
  3.22  beginning after December 31, 1996.