Accelerated Recognition of Installment Sale Gains


You must accelerate recognition of your gains from an installment sale of any interest in, or assets of, a pass-through entity if either of these apply:

  • You are a nonresident at the time of sale
  • You become a nonresident while receiving installments

To report installment sale gains, complete Schedule M1AR, Accelerated Recognition of Installment Sale Gains, to accelerate or defer your gains. If you defer your gains, you must file a Minnesota Individual Income Tax return each year and include supporting federal information.

Do not complete this schedule of either if these apply:

  • You are a full-year Minnesota resident
  • The sale occurred on or before December 31, 2016

For details, see the instructions for Schedule M1AR and Minnesota Statute 290.0137. To see an example of reporting gains, see Sourcing Income for Gains Related to Installment Sale.

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