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.

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Terms Used In Minnesota Statutes 290.9726

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

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[Repealed, 1987 c 268 art 1 s 127]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[Repealed, 1987 c 268 art 1 s 127]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[Repealed, 1987 c 268 art 1 s 127]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[Repealed, 1Sp2001 c 5 art 9 s 30]