2007 Minnesota Statutes

290.9726 CORPORATION TAXABLE INCOME TAXED TO SHAREHOLDERS.
    Subdivision 1. General rule. The gross income of the shareholders of corporations described
in section 290.9725 shall be computed under the provisions of section 290.01, subdivision 20.
    Subd. 2. Character of items distributed or considered distributed. The character of any
item of income, gain, loss, or deduction included in shareholder's income, for the period of
time that the shareholder is not a resident of Minnesota, shall be determined as if the item were
realized directly from the source from which it was realized by the corporation or incurred in the
same manner as incurred by the corporation.
    Subd. 3.[Repealed, 1987 c 268 art 1 s 127]
    Subd. 4. Treatment of family groups. Any amount of taxable income apportioned or
allocated to a shareholder may be reapportioned or reallocated under the provisions of section
1366(e) of the Internal Revenue Code if the commissioner determines it necessary in order to
correctly reflect the value of services rendered to the corporation by the shareholders.
    Subd. 5.[Repealed, 1987 c 268 art 1 s 127]
    Subd. 6.[Repealed, 1987 c 268 art 1 s 127]
    Subd. 7.[Repealed, 1Sp2001 c 5 art 9 s 30]
History: 1982 c 523 art 1 s 61; 1983 c 207 s 39,40,43; 1983 c 342 art 1 s 43; 1984 c 514
art 1 s 8; art 4 s 9; 1985 c 210 art 2 s 8; 1Sp1985 c 14 art 21 s 49; 1986 c 444; 1Sp1986 c 1
art 1 s 9; 1987 c 268 art 1 s 114-116; 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; 1999 c 243 art 2 s 27