For purposes of calculating the Minnesota taxable estate, the exclusion amount for decedents dying in 2017 is $1.8 million. The subtraction for qualified small business property and qualified farm property is $3.2 million, for a total possible exclusion of $5 million for qualifying estates. In 2014, the exclusion amount was increased from $1 million to $1.2 million, with the threshold increasing by $200,000 every year until it reaches $2 million. The subtraction amount for qualified small business and farm property decreases as the general exclusion amount increases, in order to keep the total possible exclusion amount at $5 million.
This bill removes the phase-in of the exclusion amount for the calculating the Minnesota taxable estate and establishes a single exclusion amount of $5 million, effective for decedents dying in 2017 and thereafter. The bill makes other changes in the estate tax chapter to remove references to the qualified small business and qualified farm property subtractions, which are no longer applicable given the proposed change to the threshold amount.
|