Missouri - Income from trust is nonbusiness income

March 2013


The Missouri Administrative Hearing Commission recently held that interest income and capital gains earned from a taxpayer’s investment in a rabbi trust were items of nonbusiness income. Missouri taxpayers should be aware of the decision as a unique example of nonbusiness income. While other Missouri nonbusiness income decisions addressed the sale and liquidation of separate and distinct businesses, MINACT found nonbusiness income to exist when the taxpayer had a ‘total lack of control’ over the source of the income. [MINACT, Inc. v. Director of Revenue, Missouri Administrative Hearing Commission, No. 10-1951 RI, 1/28/13]

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