Do I nee dto prepar a MN return

[Kram BergGold]

Client is a non resident of MN. Sold a residence at a slight loss with a sale price of $46k. So no gain or claimable loss. Do we need to file a MN individual return?

[Koss]

No gain, no pain

Okay, I'll take this one...

From the Minnesota instructions:

Filing requirements for part-year residents and nonresidents

1. Determine your total income from all sources (including sources not in Minnesota) while a Minnesota resident.

2. Determine the total of the following types of income you received while a nonresident of Minnesota:

• wages, salaries, fees, commissions, tips or bonuses for work done in Minnesota
• gross rents and royalties received from property located in Minnesota
• gains from the sale of land or other tangible property in Minnesota
• gains from the sale of a partnership interest, to the extent the partnership had property or sales in Minnesota
• gain on the sale of goodwill or income from an agreement not to compete connected with a business operating in Minnesota
• Minnesota gross income from a business or profession conducted partly or entirely in Minnesota (Gross income is income before any deductions or expenses). This is the amount from line 7 of federal Schedule C, line 1 of Schedule C-EZ or line 11 of Schedule F of Form 1040. Gross income from a partnership or S corporation is the amount on line 22 of Schedule KPI or line 22 of Schedule KS.)
• gross winnings from gambling in Minnesota

3. Add step 1 and step 2. If the total is $9,350 or more, you must file Form M1 and Schedule M1NR.

No reference to any losses. Sounds like you may not even be allowed to net the gains and losses. But if your client doesn't have any gain, it seems like he doesn't have to file a return.

BMK

[Koss]

On the other hand...

Your client might fall into a Catch-22.

If the Minneosta Department of Revenue sees a Form 1099-S with a Minnesota nexus, they might be looking for a return, since they have no idea what the basis was.

Your client might have to file a return in order to show that he's not required to file a return.

BMK