Minnesota DOR notice - Only income that cannot be apportioned constitutionally is nonbusiness income; no limit on allocation of gain from goodwill

Start adding items to your reading lists:
Save this item to:
This item has been saved to your reading list.

July 2017


The Minnesota Department of Revenue (the “Department”) issued Revenue Notice # 17-02 to advise that the Department does not follow a tax court case from over ten years ago (the 2006 Minnesota Tax Court’s decision in Nadler v. Commissioner), which allowed for a category of nonbusiness income to be subject to apportionment. The Department does not recognize a distinction between types of nonbusiness income. The Department requires that all business income be apportioned and all nonbusiness income be assigned/allocated.

Additionally, the Revenue Notice states that the Department does not recognize a fixed limitation on the assignment of gains from the sale of goodwill.

Contact us

Peter Michalowski

Peter Michalowski

State and Local Tax Leader, PwC US

Follow us