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Chapter 290
Section 290.491
Topics
This is an historical version of this statute chapter. Also view the most recent published version.
290.491 TAX ON GAIN; DISCHARGE IN BANKRUPTCY.
(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 section 290.091 for 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 sections 290.02 and 290.03 on 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 section 290.091.
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
(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 section 290.091 for 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 sections 290.02 and 290.03 on 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 section 290.091.
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
Official Publication of the State of Minnesota
Revisor of Statutes