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Last Updated: 12/10/2018

Accelerated Recognition of Certain 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 any of the following apply:

  • You are a nonresident at the time of sale
  • You become a nonresident during the period you receive installments

How do I report this?

Complete Schedule M1AR, Accelerated Recognition of Installment Sale Gains, to accelerate or defer your gains. If you elect to defer your gains, you must file a Minnesota return each year and include the necessary supporting federal information.

Are there any exceptions?

Full-year Minnesota residents are not required to complete Schedule M1AR. Also, you do not need to complete this schedule if the sale occurred on or before December 31, 2016.

Where can I find more information?

See the instructions for Schedule M1AR and Minnesota Statute 290.0137. If you have further questions, contact us at 651-556-3075 or businessincome.tax@state.mn.us.