MN HF1357

Requires Minnesota taxpayers to add unrealized capital gains exceeding $1,000,000 to their state taxable income upon death, effectively taxing appreciation that would otherwise escape taxation due to the federal "stepped-up basis" rule

Calculates gains as if capital assets were sold on the date of death at their federal gross estate value, capturing appreciation that occurred during the decedent's lifetime

Exempts agricultural homestead land classified as class 2a from the definition of taxable capital assets

Provides automatic 275-day filing extension for income tax returns including these deemed capital gains, with an additional 180-day extension available for good cause

Effective for taxable years beginning after December 31, 2025