Minnesota Legislature
SF 824
as introduced - 90th Legislature (2017 - 2018) Posted on 02/10/2017 09:27am
Current Version - as introduced
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A bill for an act
relating to taxation; individual income; allowing subtractions for mortgage insurance
premiums and discharges of qualified principal residence indebtedness; amending
Minnesota Statutes 2016, sections 290.0132, by adding subdivisions; 290.091,
subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 23. new text end
new text begin Discharge of qualified principal residence indebtedness. new text end
new text begin
(a) The amount
of the discharge of qualified principal residence indebtedness allowed under section
108(a)(1)(E) of the Internal Revenue Code, is a subtraction, if section 108(a)(1)(E) of the
Internal Revenue Code, as amended, applies for the taxable year.
new text end
new text begin
(b) The date named in subdivision 19 does not apply to this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 2.
Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 24. new text end
new text begin Mortgage insurance premiums. new text end
new text begin
(a) For individuals who claim itemized
deductions under section 63(d) of the Internal Revenue Code, the amount of mortgage
insurance premiums allowed as qualified residence interest under section 163(h)(3)(E) of
the Internal Revenue Code, is a subtraction, if section 163(h)(3)(E) of the Internal Revenue
Code, as amended, applies for the taxable year.
new text end
new text begin
(b) The date named in subdivision 19 does not apply to this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end
Sec. 3.
Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and
(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.0132, subdivision 2;
(2) an overpayment of state income tax as provided by section 290.0132, subdivision 3,
to the extent included in federal alternative minimum taxable income;
(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(4) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7, 9 to 15, 17, deleted text begin anddeleted text end 21new text begin , and 23new text end ; and
(5) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end