MN HF2774

Conforms Minnesota tax code to federal marriage penalty relief by modifying standard deduction calculations for married couples filing joint and separate returns, effective for taxable years beginning after December 31, 2012.

Limits section 179 expensing adjustments to taxable years beginning before January 1, 2012, allowing conformity with increased federal expensing limits while phasing out the state adjustment.

Adds subtractions from federal taxable income for married couples claiming standard deductions: married filing jointly subtract the difference between twice the single filer standard deduction and the married filing jointly standard deduction, and married filing separately subtract the difference between the single filer and married filing separately standard deduction.

Modifies depreciation and expensing provisions in subdivisions 19a, 19b, and 19c to align state and federal tax treatment of qualified property depreciation under section 168(k) and section 179 of the Internal Revenue Code.

All changes effective for taxable years beginning after December 31, 2011, with specific provisions addressing itemized deductions, personal exemptions, and standard deduction calculations for individuals, estates, and trusts.