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Gain from the Sale of a Farm: Insolvent Farmer

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If you sold farm property, and the farm was insolvent at the time, you may not have to pay Minnesota income tax on some of the profit from the sale. You may be able to subtract some of the profit from your Minnesota taxable income.

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Do I qualify for this subtraction? [+]

To qualify, all of the following must be true:

You owned and operated the farm.
Your debts were greater than the fair market value of your assets immediately before the sale.
The gain from the sale was included in your federal adjusted gross income on federal Form 1040.
You applied the sale proceeds to paying off the mortgage, contract for deed, or any liens on the property.

Note: “Farm property” includes agricultural production property, other real property, or equipment used in a farm business that you owned and operated.

How do I claim this subtraction? [+]

Contact Info

Email

Contact form

Phone [+]

Questions

651-296-3781
800-652-9094

Hours [+]

Address [+]

Mail your income tax return to:

Minnesota Department of Revenue
Mail Station 0010
600 N. Robert Street
St. Paul, MN 55145-0010

Mail your property tax refund return to :

Minnesota Department of Revenue
Mail Station 0020
600 N. Robert Street
St. Paul, MN 55145-0020

Mail your tax questions to:

Minnesota Department of Revenue
Mail Station 5510
600 N. Robert Street
St. Paul, MN 55146-5510

Street address (for deliveries):
Minnesota Department of Revenue
Individual Income Tax
600 North Robert Street
St. Paul, MN 55101

Returns and payments may be placed in the night deposit box located in front of our building.

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Last Updated

December 21, 2020