Minnesota HF4123 expands the net investment income tax to include all trade or business income exempt from self-employment taxes.

Minnesota HF4123 amends the state's Revenue Code to expand the net investment income tax to include all trade or business income that is exempt from self-employment taxes. This change applies to individuals, estates, and trusts with net investment income exceeding $1,000,000. The tax rate is set at one percent. The bill also specifies how the tax is calculated for nonresidents and estates or trusts. This amendment is effective for taxable years beginning after December 31, 2025.

Minnesota HF4123 expands the net investment income tax to include all trade or business income exempt from self-employment taxes.

Minnesota HF4123 amends the state's Revenue Code to expand the net investment income tax to include all trade or business income that is exempt from self-employment taxes. This change applies to individuals, estates, and trusts with net investment income exceeding $1,000,000. The tax rate is set at one percent. The bill also specifies how the tax is calculated for nonresidents and estates or trusts. This amendment is effective for taxable years beginning after December 31, 2025.