What's new for 2011
Qualified Small Business and Farm Property Deduction
For decedents dying after June 30, 2011, a deduction is available from the Minnesota adjusted taxable estate if the decedent owned qualified small business or qualified farm property and passed that property at death to a qualified heir.
The deduction cannot exceed $4 million and qualified heirs must pay a recapture tax if a qualified heir fails to own the property or if a family member fails to use the property for a qualified use during the three years after the decedent’s death. To claim the election, the executor and heirs must complete and attach Schedule M706Q, Election to Claim the Qualified Small Business and Farm Property Deduction.
For further information on this topic see Tax Information tab above.
Within nine months of the filing of Form M706, Estate Tax Return, the department will send the executor notification indicating whether the return is under examination or has been processed as final.