Minnesota HF4000 establishes a subtraction for capital gains on the sale of a principal residence.

Minnesota HF4000 amends state tax law to allow a subtraction for capital gains on the sale of a principal residence. This subtraction applies to gains exceeding $250,000 or $500,000, depending on the taxpayer's status under the Internal Revenue Code. The bill defines "principal residence" as a property that qualifies for the exclusion from gross income under section 121 of the Internal Revenue Code. This change takes effect for taxable years beginning after December 31, 2025.

Minnesota HF4000 establishes a subtraction for capital gains on the sale of a principal residence.

Minnesota HF4000 amends state tax law to allow a subtraction for capital gains on the sale of a principal residence. This subtraction applies to gains exceeding $250,000 or $500,000, depending on the taxpayer's status under the Internal Revenue Code. The bill defines "principal residence" as a property that qualifies for the exclusion from gross income under section 121 of the Internal Revenue Code. This change takes effect for taxable years beginning after December 31, 2025.