2000 Minnesota Statutes

     290.23 Estates and trusts; computation of net income, 
  credits; deductions. 

    Subdivision 1. Repealed, 1981 c 178 s 119 

    Subd. 2. Repealed, 1981 c 178 s 119 

    Subd. 3.    Unused loss carryovers and excess deductions 
 on termination available to beneficiaries.  If on the 
 termination of an estate or trust, the estate or trust has 

    (1) a net operating loss carryover under section 290.095, 
 or any other loss or credit carryover allowed under this 
 chapter; or 

    (2) for the last taxable year of the estate or trust 
 deductions (other than the charitable deduction) in excess of 
 gross income for such year, 

    then such carryover or such excess shall be allowed as a 
 deduction, in accordance with rules prescribed by the 
 commissioner, to the beneficiaries succeeding to the property of 
 the estate or trust.  This provision does not apply to 
 individuals, and carryovers and deductions must be reported as 
 provided in section 290.01, subdivisions 19 to 19b. 

    Subd. 4.    Net operating loss deduction.  The benefit 
 of the deduction for net operating loss allowed by section 
 290.095 shall be allowed to estates and trusts under rules 
 prescribed by the commissioner.  The benefit of such deduction 
 shall not be allowed to a common trust fund but shall be allowed 
 to the participants in the common trust fund under rule 
 prescribed by the commissioner. 

    Subd. 5.    Distributable net income, income, beneficiary; 
 defined.  (1) For purposes of sections 290.22 through 290.25, 
 the term "distributable net income" means the same as that term 
 is defined in section 643(a) of the Internal Revenue Code, with 
 the following modification:  

    There shall be included any tax-exempt interest to which 
 section 290.01, subdivision 19b, clause (1) applies. 

    If the estate or trust is allowed a deduction under section 
 642(c) of the Internal Revenue Code, the amount of the 
 modification shall be reduced to the extent that the amount of 
 income which is paid, permanently set aside, or to be used for 
 the purposes specified in that section of the Internal Revenue 
 Code is deemed to consist of items specified in the 
 modification.  For this purpose, such amount shall (in the 
 absence of specific provisions in the governing instrument) be 
 deemed to consist of the same proportion of each class of items 
 of income of the estate or trust as the total of each class 
 bears to the total of all classes. 

    (2) The term "income," and the term "beneficiary" have the 
 same meaning as those terms are defined in section 643(b) and 
 (c) of the Internal Revenue Code.  The treatment of property 
 distributed in kind and of multiple trusts shall be the same as 
 provided in section 643 of the Internal Revenue Code. 

    Subd. 6. Repealed, 1981 c 178 s 119 

    Subd. 7. Repealed, 1981 c 178 s 119 

    Subd. 8. Repealed, 1981 c 178 s 119 

    Subd. 9.    Inclusion of amounts in gross income of 
 beneficiaries of estates and trusts accumulating income or 
 distributing corpus.  The provisions of sections 652, 662, 663 
 and 664(b) of the Internal Revenue Code shall apply to inclusion 
 of amounts in gross income of beneficiaries.  

    Subd. 10. Repealed, 1981 c 178 s 119 

    Subd. 11. Repealed, 1981 c 178 s 119 

    Subd. 12. Repealed, 1981 c 178 s 119 

    Subd. 13. Repealed, 1981 c 178 s 119 

    Subd. 14. Repealed, 1981 c 178 s 119 

    Subd. 15. Repealed, 1990 c 480 art 5 s 15 

    Subd. 16. Repealed, 1980 c 607 art 1 s 33 

    HIST: (2394-28a) 1939 c 446 s 10; 1941 c 500 s 12; 1943 c 656 
 s 12; 1945 c 604 s 29; 1957 c 932 s 1; 1973 c 725 s 52; 1977 c 
 376 s 6; 1979 c 303 art 1 s 21; 1980 c 607 art 1 s 32; 1981 c 60 
 s 27; 1981 c 178 s 68-71; 1982 c 523 art 1 s 31; art 40 s 14; 
 1983 c 207 s 43; 1983 c 342 art 1 s 29,43; 1984 c 514 art 1 s 8; 
 art 4 s 5; 1985 c 248 s 70; 1Sp1985 c 14 art 21 s 33,49; 1Sp1986 
 c 1 art 1 s 9; 1987 c 268 art 1 s 81,82,126; 1988 c 719 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