Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0110 - Allocation of Oregon Modifications to Passive Activity Losses

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Oregon Passive
			 Activity Loss. The Oregon passive activity loss shall be equal to the federal
			 passive activity loss (defined in IRC Section 469(d)) as modified by the
			 additions, subtractions, modifications or adjustments provided in ORS Chapters
			 314, 316, 317, and 318 as they relate to passive activities (defined in IRC
			 Section 469(c)).
(2)
(a) Modifications to Federal Passive Activity
			 Losses. Modifications that may apply to passive activities of individuals
			 include but are not limited to the following:
(A) The addition provided in ORS
			 316.680(2)(a)
			 for interest or dividends on obligations of another state, provided the
			 interest or dividends are derived in the ordinary course of the passive
			 activity.
(B) The addition or
			 subtraction provided in ORS
			 316.707 for differences in
			 depreciation of assets used in the passive activity.
(C) The addition or subtraction provided in
			 ORS 316.716 due to a difference in
			 basis, upon the taxable sale, exchange or disposition by the taxpayer of an
			 asset used in the passive activity.
(D) The addition provided in ORS
			 316.723 for public utility stock
			 dividends and the subtraction for gain or loss on the sale of public utility
			 stock where dividends were reinvested, provided the dividends and gain or loss
			 are derived in the ordinary course of the passive activity.
(E) The addition provided by ORS
			 316.680(2)(d)
			 for depletion in excess of the adjusted basis of property if the property is
			 used in the passive activity.
(F)
			 The subtraction provided in ORS
			 316.680(1)(a)
			 for interest or dividends on obligations of the U.S. government if the interest
			 or dividends are derived in the ordinary course of the passive activity.
(G) The subtraction for wage
			 expense paid or accrued with respect to the passive activity but not deducted
			 in arriving at federal taxable income because the federal targeted jobs credit
			 under IRC Section 51 was claimed.
(H) The subtraction provided by ORS
			 314.210 for the elimination of
			 excess profits on government contracts if such profits were derived in the
			 ordinary course of the passive activity.
(I) The addition or subtraction provided in
			 ORS 316.872 for deferral of gain on
			 the sale of small business securities if the securities were held or sold in
			 the ordinary course of the passive activity.
(J) The addition or subtraction provided in
			 ORS 316.873 for deferral of gain on
			 the sale of capital assets, if the assets were held or sold in the ordinary
			 course of the passive activity.
(K) The subtraction provided in ORS
			 316.744 for energy conservation
			 payments if the energy conservation measure was undertaken with respect to the
			 passive activity.
(L) The addition
			 provided in ORS 316.680(2)(e)
			 for deferred gain on involuntary conversions or exchanges of Oregon property,
			 the proceeds of which are reinvested in property outside Oregon. This
			 modification applies if the property disposed of was used in the passive
			 activity.
(M) The subtraction
			 provided in ORS 316.056 for interest or
			 dividends on obligations of Oregon political subdivisions, provided the
			 interest or dividends are derived in the ordinary course of the passive
			 activity.
Example:
Mary has a post-1987 nonrental passive
				activity loss for federal purposes of $13,500. She shows an addition for
				depreciation for Oregon of $1,000 and a subtraction for a jobs credit of $600.
				The computation of Mary's passive loss for Oregon is shown below:
Federal loss - ($13,500)
Oregon addition for depreciation - 1,000
Oregon subtraction for jobs credit - (600)
Passive loss for Oregon - $13,100