reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0425 - Oregon Multiple Funeral Trust Tax Return

Current through Register Vol. 63, No. 7, July 1, 2024
(1) General Rule. A trust established as a
			 "funeral trust" and filing a fiduciary return under federal law as a grantor
			 trust may join in filing an Oregon multiple funeral trust tax return.
(2) Election. The election provided in this
			 rule is made each tax year. It is deemed to be made by the trustee of the
			 funeral trust as of the date the multiple trust tax return is filed. The
			 trustee of an individual funeral trust may elect not to join in filing an
			 Oregon multiple funeral trust tax return by filing a separate Oregon fiduciary
			 tax return under the trust name used for federal filing purposes.
(3) Filing Requirements:
(a) The Oregon multiple funeral trust return
			 shall be made and filed on Oregon Form 41 (Oregon Fiduciary Income Tax Return)
			 by the authorized fiduciary. If two or more fiduciaries are acting jointly, the
			 return may be made by any one of them. If an Oregon multiple funeral trust tax
			 return is not filed, the trustee of each individual funeral trust must file an
			 Oregon fiduciary return for such trust under the usual filing requirements of
			 ORS 316.362.
(b) The Form 41 (Oregon Fiduciary Income Tax
			 Return) filed for the Oregon multiple funeral trust shall include the trustee's
			 name in the name of the trust.
Example:
Name of trust: Serene Acres Funeral Home Trusts.
Name of fiduciary (trustee): Serene Acres Funeral
				Home
(c) The Form 41 for the
			 Oregon multiple funeral trust tax return shall include a statement on the face
			 of the return to the effect that under the terms of the trust instruments, the
			 trusts included in the multiple filing are grantor trusts and all income is
			 taxable to the grantors under the Internal Revenue Code.
(d) The Oregon multiple funeral trust tax
			 return will not require a Federal Identification Number. The Department of
			 Revenue will assign a Business Identification Number (BIN) to the multiple
			 return. The BIN will be made available to the fiduciary of the multiple funeral
			 trust return on request for identification purposes.
(e) In addition to the Form 41 required to be
			 filed by the multiple funeral trust, a schedule shall be attached to the
			 return. The schedule shall report the following information for each trust
			 included in the multiple funeral trust tax return: The name, address and social
			 security number of the grantor, the name and address of the trustee, the name
			 and address of the funeral home, the trust federal identification number, the
			 trust taxable year, the beneficiary's social security number, and the amount
			 and description of income earned by the trust during the taxable year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0427 - Persons Required to Make Returns

Current through Register Vol. 63, No. 7, July 1, 2024
A person having income taxable by this state which is not
				included in federal taxable income is required to file a return. For example, a
				return must be filed reporting interest on obligations of any foreign state or
				territorial possession of the United States which by the laws of the United
				States is exempt from federal income taxation but not from state income
				taxation.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.362
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0435 - Petitioning Department to Equally Split Joint Liability

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A tax liability incurred by spouses
			 filing a joint tax return is joint and several. Each spouse is responsible for
			 the entire liability. However, the department may split a joint tax liability
			 equally between two separated or divorced spouses. Either spouse may file a
			 petition to split the joint liability equally between the spouses. In order to
			 split the liability, the department must be satisfied that payment of the
			 entire liability by the petitioning spouse will cause undue hardship on the
			 petitioner and petitioner's household. Mere inconvenience is insufficient to
			 establish hardship. A statement in the divorce decree is also insufficient to
			 relieve either spouse of the liability.
(2) The conditions listed below may
			 constitute hardship. The examples given are not intended to be all-inclusive.
(a) Annual household income of the
			 petitioning spouse, number of dependents and limited assets within the
			 household are such that petitioner could not, in the department's opinion, pay
			 the entire liability within five years.
Example 1
: The petitioning spouse receives social
				security income with no other income and only minimal assets.
Example 2
: The petitioning spouse earns $20,000
				annually, is not receiving child or spousal support, and is the sole support of
				three adolescent dependents. Household assets are minimal. The liability owed
				jointly with the petitioner's ex-spouse is $4,000.
(b) Major medical problems or a prolonged
			 illness of either the petitioning spouse or a family member that either
			 severely limits petitioning spouse's earning ability or creates an extreme
			 financial burden on household resources.
Example 3
: Petitioning spouse or family member has
				a major illness and has been forced to retire. The only household income is
				from social security.
Example 4
: The petitioning spouse has a major
				illness and family is living on disability and attempting to meet high medical
				costs.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0440 - Innocent Spouse, Separation of Liability, and Equitable Relief Provisions

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Internal Revenue Service (IRS) Determination Made to Grant Relief. The
			 department will grant relief from liability for tax under ORS
			 316.369 if the person seeking
			 relief provides proof that the IRS has made a determination under IRC
			 §6015 that relieved the person of liability for federal taxes for the same
			 tax year. As soon as the determination is made regarding the request for
			 relief, the department will send a letter to each spouse informing them of the
			 department's determination.
(2)
(a) No IRS Determination Made or IRS Denied
			 Relief. A taxpayer who has filed an Oregon joint return may seek relief from
			 liability by applying to the Department of Revenue even if the taxpayer has not
			 applied for relief to the IRS. Or, if the IRS has denied relief, the taxpayer
			 may ask the department to make a separate determination for relief from state
			 liability. To request innocent spouse relief under the provisions of section
			 (4), allocation of liability under the provisions of section (5), or equitable
			 relief under the provisions of section (6), the taxpayer must write a letter to
			 the department that includes the taxpayer's name, address, Social Security
			 number, the taxpayer's spouse's (or former spouse's) name and Social Security
			 number, the tax years for which the taxpayer is requesting relief for, and the
			 type of relief the taxpayer is requesting. The department will treat the
			 request for relief from liability as also constituting a request for any
			 applicable refund. A taxpayer may file a request for innocent spouse relief,
			 allocation of liability, or equitable relief with the department at any time.
			 There is no statute of limitation on requesting relief under these provisions.
(b) The department will send a
			 letter to the nonrequesting spouse if relief is requested from joint and
			 several liability on a joint return and will allow the nonrequesting spouse to
			 submit information related to the determination of the request for relief from
			 liability. As soon as the determination is made regarding the request for
			 relief, the department will send a letter to each spouse informing them of the
			 department's determination.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0445 - Liability of Fiduciaries

Current through Register Vol. 63, No. 7, July 1, 2024
A fiduciary is required to file a return reporting all of the
				income of the estate or trust even though such income may not in whole or in
				part be taxable to the estate or trust. If an estate or trust is exempt from
				filing under federal Internal Revenue Code regulations, it is also exempt from
				filing for Oregon unless notice to file is given by the Oregon Department of
				Revenue. The fiduciary also is required to pay the taxes on the income taxable
				to the estate or trust. Liability for the payment of the tax attaches to the
				person of the estate's personal representative up to and after discharge, where
				prior to distribution and discharge, personal representative failed to file a
				return as required by law or failed to exercise due diligence in determining
				and satisfying the tax obligation. Liability for the tax also follows the
				estate itself. When by reason of the distribution of the estate and the
				discharge of the personal representative it appears that collection of tax
				cannot be made from the personal representative, legatees or distributees must
				account for their proportionate share of the tax due and unpaid to the extent
				of the distributive share received by them. See ORS
				314.310. The same considerations
				apply in the case of trusts. See also ORS
				316.387.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.382
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0450 - Decedent's Estate: Request for a Final Tax Determination

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The representative of a decedent's estate
			 has an affirmative duty to file any returns which the decedent failed to file
			 or was unable to file (e.g., the return required for the part of the tax year
			 prior to death, or returns required for previous tax years which weren't filed
			 due to the final illness of the decedent) and to pay the indicated tax,
			 penalties and interest, if any, from the funds of the estate. The state has no
			 duty to watch for printed notices to creditors or to file a creditor's claim
			 with the decedent's representative.
(2) The representative of a decedent's estate
			 may make an election for a final tax determination of any returns required to
			 be filed under chapter 316 during the period of estate administration from a
			 decedent or a decedent's estate. The election must be in writing and may be
			 made by filing Department of Revenue Form 150-101-151 "Election for Final Tax
			 Determination." The election is applicable to:
(a) All individual income tax returns filed
			 by the decedent for which the statute of limitations is open for adjustment at
			 the time the election is filed;
(b) The decedent's final individual income
			 tax return;
(c) Any individual
			 income tax returns the representative of a decedent's estate is required to
			 file on behalf of the decedent because the decedent failed to file the required
			 returns prior to their death; and
(d) Any fiduciary income tax returns filed
			 during the period of estate administration. The election must be filed with the
			 return(s) for which the election is applicable.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0452 - Decedent' Estate: Application for Discharge from Personal Liability for Tax on Decedent's Income

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 representative of a decedent's estate may make written application to the
			 department for discharge from personal liability for tax on the decedent's
			 income. This application must be made after filing the decedent's final
			 individual income tax return, or any individual income tax returns the
			 representative of a decedent's estate is required to file on behalf of the
			 decedent because the decedent failed to file the required returns prior to
			 their death.
(2) The written
			 application must include the following information:
(a) The name of the decedent;
(b) The decedent's Social Security Number;
(c) A list of the tax years for
			 which the representative of a decedent's estate filed individual income tax
			 returns on behalf of the decedent during the period of estate administration.
			 The representative of a decedent's estate must also provide a copy of the
			 document which shows they were appointed to represent the estate.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0460

Current through Register Vol. 63, No. 7, July 1, 2024
The forms referenced are available from the
				  agency.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.457
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0465 - Estimated Tax

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
(a) No declaration of estimated tax is
			 required if the estimated tax as defined ORS
			 316.557 is less than
			 $1,000.
(b) A required declaration
			 shall contain information and be in the form prescribed by the Department of
			 Revenue. Federal forms are not acceptable.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0475 - Estimated Tax: Farmer's and Fisher's

Current through Register Vol. 63, No. 7, July 1, 2024
For the purpose of declaring estimated tax, gross income is
				determined using sources within and without this state.
Example:
John is a resident of the state of
				Washington and owns a farm which is located in Oregon. All of his other income
				is from nonfarm sources within the state of Washington. The total farm income
				from Oregon sources is $50,000. The total gross income from within and without
				Oregon is $90,000. Since the gross income from farming is not equal to or
				greater than two-thirds of John's total gross income, the exception for farmers
				and fishers to making estimated tax payments is not met.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.573
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0480 - Estimated Tax: Application of Prior Year Overpayment (Refund)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions for
			 purposes of this rule:
(a) "Open estimated
			 tax account" is an account to which estimated tax installments may be made
			 under ORS 316.579.
(b) "Estimated tax underpayment period" is
			 the period after the due date for the fourth estimated tax installment but
			 prior to the due date for filing the related tax return, excluding extensions,
			 for that period. This period is generally January 16 through April 15 (when the
			 taxable year is a calendar year).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0485 - Tax Used to Compute Underpayment of Estimated Tax

Current through Register Vol. 63, No. 7, July 1, 2024
Any interest due for underpaying estimated taxes is computed
				using the total tax shown on the return. If the return is adjusted in initial
				processing, the recomputed tax must be used for determining any underpayment
				interest. Prior to October 6, 2001, subsequent amendments to the tax will not
				affect the underpayment interest amount unless the amended return is received
				prior to the statutory due date of the original return. Amended returns filed
				on or after October 6, 2001 will not affect the underpayment interest amount
				unless the amended return is received by the statutory due date of the original
				return or within the extension period granted for the original return.
Example 1
:
Mary files an Oregon
			 income tax return on a calendar year basis. She filed a return for tax year
			 2000 on February 15, 2001, showing a tax liability of $1,700. On April 10,
			 2001, she filed an amended return for tax year 2000 showing a tax liability of
			 $1,450. The return for the taxable year for purposes of computing any interest
			 on underpayment of estimated tax is the amended return filed on April 10,
			 2001.
Example 2
:
Using the same facts as given in Example 1 except that Mary's amended return
			 was filed on May 20, 2001. The original return filed on February 15, 2001, is
			 the return for the taxable year for purposes of computing any interest on
			 underpayment of estimated tax.
Example
			 3
:
Mark files an Oregon income tax return on a
			 calendar year basis and had an extension to October 15, 2008 in which to file
			 his 2007 return. He filed his 2007 return on May 1, 2008 showing a tax
			 liability of $2,150. On October 15, 2008, he filed an amended return for 2007
			 showing a tax liability of $1,375. The return for the taxable year for purposes
			 of computing any interest on underpayment of estimated tax is the amended
			 return filed on October 15, 2008.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.587
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0487 - Estimated Tax: Underpayment Interest Not Imposed if There is a Casualty, Disaster or Other Unusual Circumstances

Current through Register Vol. 63, No. 7, July 1, 2024
(1) No interest for underpayment of estimated
			 tax will be imposed on any portion of the underpayment that is caused by reason
			 of casualty, disaster or other unusual circumstances where it would be against
			 equity and good conscience to impose interest. The determination of whether
			 unusual circumstances exist is made on a case-by-case basis, taking into
			 account all pertinent facts and circumstances. The most important factor is the
			 extent of the effort required by the taxpayer to comply with the law and make
			 the required installments.
(2) The
			 following are examples of situations that will be accepted by the department as
			 unusual circumstances for not imposing interest.
(a) Where the failure to make the necessary
			 estimated tax payment was caused by death or serious illness of the taxpayer,
			 or death or serious illness in the taxpayer's immediate family.
(b) Where the taxpayer's books and records
			 are destroyed by fire, flood or other natural disaster and therefore, the
			 taxpayer is unable to determine the correct estimated tax payment.
(c) Where the disaster is so overwhelming
			 that the taxpayer neglects to make the necessary estimated tax payment.
(d) Where the failure to make the
			 necessary estimated tax payment was caused by the unavoidable and unforeseen
			 absence of the taxpayer from the state immediately prior to the due date of the
			 estimated tax payment.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0491 - Estimated Tax: Partnership and S Corporation Income of Part-year Residents and Nonresidents

Current through Register Vol. 63, No. 7, July 1, 2024
For purposes of imposing interest on underpayment of estimated
				tax, an exception exists for part-year and nonresidents receiving income from
				an S corporation. No interest will be imposed on the underpayment attributable
				to the shareholders pro rata share of the S corporation income if the income is
				for the initial year in which S corporation status is elected and the
				shareholder is a nonresident or for the prior tax year was a part-year resident
				for Oregon. This exception applies to tax years beginning on or after January
				1, 1987.
Example:
Frank and Ethel move to Oregon in August,
				2006. Frank is a partner in an Oregon partnership. The partnership incorporates
				in 2007 and elects S corporation status. For 2007, Frank and Ethel file as
				full-year Oregon residents and report their share of the S corporation income.
				No interest is imposed on any underpayment attributable to Frank's share of the
				S corporation income because they meet the exception. They are part-year
				residents for 2006; 2007 is the initial year of election of S corporation
				status.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.587
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0493 - Required Installments for Estimated Tax

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions.
(a) "Required annual payment" means the total
			 amount of required installment payments for the tax year.
(b) "Required installment payment" means the
			 amount of the payment that is due for each of the four payment periods during
			 the tax year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0495 - Estimated Tax: Joint Return to Single or Separate Return

Current through Register Vol. 63, No. 7, July 1, 2024
For estimated tax payments due for tax years beginning on or
				after January 1, 1988, in computing the required installment for the current
				year, the tax liability for the prior year may be used even though the current
				year is a single or separate return and the prior year's return is a joint
				return. The prior year's return must be filed timely including extensions and
				must cover 12 months. The prior year's tax will be allocated in the following
				manner:
(1) Recompute the prior year's
			 tax liability as if each spouse had filed a single or separate return; and
(2) Multiply the joint tax
			 liability for the prior year by a ratio of each spouse's single or separate
			 liability to the combined single or separate liabilities.
Example:
Dan and Jessica filed a joint return for
				the calendar year 2008 showing taxable income of $63,000 and a tax after
				credits of $4,084. Of the $63,000 taxable income, $38,000 was attributable to
				Dan and $25,000 was attributable to Jessica. Dan and Jessica will file separate
				returns in 2009. The tax shown on the return for the preceding taxable year,
				for determining the required installments for 2009, is determined as follows:
				[Formula not included. See ED. NOTE.]
Table referenced is not included in rule text. #REV
				  7-2016, f. 8-10-16, cert. ef.
				  #.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.587
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0497 - Estimated Tax: Single or Separate Returns to Joint Return

Current through Register Vol. 63, No. 7, July 1, 2024
For estimated tax payments beginning on or after Jan. 1, 1988,
				in computing the required instalment for the current year, the tax liability
				for the prior year may be used even though the current year is a joint return
				and the prior year's returns are single or separate returns. This is done by
				combining the net income tax amounts from the previous year's returns of both
				spouses. The previous year's returns of both spouses must be filed timely
				including extensions, must have a tax liability, and must cover 12
				months.
Example:
Al and Darlene filed separate income tax
				returns for the calendar year 1987, showing tax liabilities of $2,640 and $350,
				respectively. In 1988 they elected to file a joint return. For the purpose of
				determining the required instalment mentioned above, the previous year's net
				income tax would be $2,990 ($2,640 plus $350).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.587
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0505 - Oregon Lottery Winnings and Losses

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For purposes of this rule:
(a) "Oregon lottery losses" means the amount
			 of wagering losses defined in Internal Revenue Code Section 165(d) that is
			 attributable to the Oregon State Lottery which was includable in federal
			 taxable income.
(b) "Oregon
			 lottery" means all games administered by the Oregon State Lottery Commission
			 including those games jointly administered by Oregon and other
			 states.
(c) "Other wagering
			 earnings" means the amount of wagering earnings that is included in Oregon
			 taxable income.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0509 - U.S. Government Obligations

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Interest and dividend income on
			 obligations of the federal government which are exempt from state income
			 taxation but not from federal income taxation shall be subtracted from federal
			 taxable income in arriving at Oregon taxable income.
(2) Amounts that may not be subtracted
			 include:
(a) Timely payments of interest by
			 the insurer of obligations backed by the U.S. government;
(b) Interest received on federal tax refunds.
Example:
Paul and Margaret filed a joint income
				tax return and received a federal tax refund from the U.S. Treasury Department
				for $1,200. This amount included $1,000 tax and $200 interest. The $200
				interest amount does not qualify for the subtraction for interest or dividend
				income on U.S. government obligations as provided under ORS
				316.680(1)(a).
(c) Interest received on obligations of
			 territories and possessions of the United States. Interest on these obligations
			 is not taxable for federal or state purposes and is not included in federal
			 adjusted gross income so no subtraction is made on the Oregon return. Interest
			 on the following obligations is not subtracted under ORS
			 316.680(1)(c):
(A) Territory of Guam
(B) Commonwealth of Puerto Rico
(C) Territory of Puerto Rico
(D) Territory of Samoa
(E) Territory of Virgin Islands
(d) Income received from
			 repurchase agreements. These are agreements in which a seller other than the
			 United States sells securities (which can be federal obligations), and agrees
			 to repurchase the same or similar securities at a price that includes interest
			 for the period of the sale. The seller, in this case, is the true owner; and,
			 the buyer merely receives interest under a contract with the seller. It is not
			 interest paid by the United States, but it is income (or the equivalent to
			 interest) paid by the seller at the time of repurchase.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0511 - Addition for Original Issue Discount (OID)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The "original issue discount" (OID), as
			 defined in section 1273 of the Internal Revenue Code,
			 is considered as paid in lieu of interest on state and municipal obligations of
			 other states, and is taxable for Oregon purposes.
(2) Holders of state and municipal bonds of
			 other states (foreign states) shall include in income the sum of the daily
			 portion of original issue discount determined for each day during the taxable
			 year the bond is held. The original issue discount (OID) shall be prorated over
			 the life of the bond using the federal rules for taxable securities under
			 Section 1272 of the Internal Revenue Code
			 and corresponding regulations.
Example:
On July 1, 1987, Jack purchased a
				California municipal bond for $800. The bond matures in two years and has a
				stated redemption price of $1,000. The bond contains $200 of original issue
				discount (stated redemption price of $1,000 less issue price of $800). Because
				the bond does not provide for periodic payments of interest, a six-month
				accrual period ending December 31 and June 30 of each calendar year is used to
				determine the semiannual yield factor of 5.74 percent ($800 compounded
				semiannually for two years at 5.74 percent is $1,000). The amount of the
				original issue discount included in income for the period ending December 31,
				1987, is the issue price ($800), multiplied by the semiannual yield factor of
				5.74 percent, or $45.90. The adjusted issue price (basis) at the beginning of
				the second accrual period is equal to the issue price plus the portion of
				original issue discount included in the first accrual period ($845.90 = $800 +
				$45.90). The includable original issue discount and basis is determined for
				each subsequent period in the same manner. [Table not included. See ED.
				NOTE.]
Attachment referenced is not included in rule text.
Click here for PDF of
				  attachment
.
Publications: The publication(s) referred to or incorporated
				  by reference in this rule is available from the Department of Revenue pursuant
				  to ORS 183.360(2) and
				  ORS 183.355(6).]
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.680
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0513 - Modification of Federal Taxable Income: Adding Interest or Dividends of the United States Exempted by Federal Income Tax Law

Current through Register Vol. 63, No. 7, July 1, 2024
Interest or dividend income attributable to obligations of any
				authority, commission, instrumentality or territorial possession of the United
				States, which by the laws of the United States is exempt from federal income
				taxation but not from state income taxation, shall be added to federal taxable
				income. Costs incurred to carry the income-producing securities may be
				deducted, to the extent those costs are not already deducted in arriving at
				federal taxable income.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.680
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0515 - Modification of Federal Taxable Income: Adding Federal Estate Tax Attributable to Income in Respect of a Decedent Not Taxable by Oregon

Current through Register Vol. 63, No. 7, July 1, 2024
The deduction allowed in the computation of federal taxable
				income for federal estate tax attributable to income in respect of a decedent
				must be added to federal taxable income to the extent that the deduction is
				allocable to income not taxable by Oregon. The federal estate tax deduction
				allowed in arriving at federal taxable income is computed in accordance with
				section 691(c) of the
				Internal Revenue Code and section 1.691(c)-1 of the Treasury Regulations. The
				amount thus computed must be allocated to the income in respect of a decedent
				not taxable by Oregon. The following formula will be used in determining the
				amount to be added to federal taxable income on the Oregon return:
A - Income in respect of a decedent included in federal taxable
				income
B - Income in respect of a decedent not taxable by
				Oregon
C - Federal estate tax deducted on the federal return Formula:
(B x C) = Amount added to federal taxable
A income on the Oregon return
The publication(s) referred to or incorporated by reference
				  in this rule is available from the office of the Secretary of State or
				  Department of Revenue pursuant to ORS
				  183.360(2) and
				  ORS 183.355(6).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.680
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0519 - Gain or Loss Upon the Sale of State and Municipal Bonds of Other States (Foreign States)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Holders of
			 state and municipal bonds of other states (foreign states) shall determine the
			 gain or loss upon the sale or disposition of the bonds by following the federal
			 rules for taxable securities under Internal Revenue Code sections 1271 to 1283
			 inclusive.
(2) Adjusted Issue
			 Price: The adjusted issue price or basis of the bonds shall be the issue price
			 increased by the total amount of original issue discount (OID) included in
			 Oregon taxable income using the rules for federal taxable securities in section
			 1272 of the Internal Revenue Code
			 and corresponding regulations. See OAR 150-316.680(2)(a) for example.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.680
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0525 - U.S. Government Interest in Retirement Accounts

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Interest or dividends on U.S. obligations
			 under ORS 316.680(1)(a)
			 included in distributions from self-employed plans or individual retirement
			 accounts as described under sections
			 401 to
			 408 of the Internal Revenue Code
			 shall be subtracted from federal taxable income to determine Oregon taxable
			 income.
(2) Annuities: The amount
			 of the subtraction shall be determined by applying a "state exempt-interest
			 ratio" to distributions received as annuity payments to the extent the payments
			 are included in federal adjusted gross income for the taxable year. The "state
			 exempt-interest ratio" is the year-to-date balance of qualifying interest or
			 dividends under ORS 316.680(1)(a)
			 included in the account balance prior to the current year distribution divided
			 by the account balance prior to the current year distribution. The year-to-date
			 balance of qualifying interest or dividends is equal to the cumulative total of
			 those earnings less any prior year's subtraction. The ratio shall be applied on
			 the later of the annuity starting date or the date on which the taxpayer
			 established residency. The annuity starting date shall be the date determined
			 under Treas. Reg. Section 1.72-4(b).
To see the formula and several examples, along with
				illustrative tables, for this rule click on the PDF link.
(3) Lump-sum distributions: For lump-sum
			 distributions from individual retirement accounts and self-employed retirement
			 plans, the subtraction shall be equal to the total qualifying interest under
			 ORS 316.680(1)(a)
			 included in the account balance at the time of distribution.
(4) Change of status from nonresident to
			 resident: Nonresidents who become residents sometime after the annuity starting
			 date shall use the same formula for computation of the ratio as if they were
			 residents at the annuity starting date. For purposes of the formula shown in
			 subsection (2)(a), "a" will equal the year-to-date balance of qualifying
			 interest or dividends which is equal to the cumulative total of those earnings
			 less any prior years deemed or actual subtraction.
Publications: The publication(s) referred to or incorporated
				  by reference in this rule is available from the Department of Revenue pursuant
				  to ORS 183.360(2) and
				  ORS 183.355(6).
To view attachments referenced in rule text,
click here to view
				  rule
.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.681
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0530 - Pool of Assets that Qualify to Pay State Exempt-Interest Dividends

Current through Register Vol. 63, No. 7, July 1, 2024
As used in ORS
				316.683(1), a
				"pool of assets" means funds that are managed by financial institutions acting
				in a fiduciary capacity for the benefit of trust beneficiaries. Financial
				institutions shall include, but not be limited to banks, savings associations,
				or credit unions. The pool of assets need not be incorporated as a regulated
				investment company in order to pay state exempt-interest dividends to its
				beneficiaries.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.683
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0535 - Federal Tax Deduction: Accrual Method of Accounting Required; Deductions Allowable to Cash Basis Taxpayers; Refunds to Be Included

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Regardless of the method of accounting
			 used by the taxpayer to report income to the federal government and to the
			 State of Oregon, the federal income tax deduction for tax years beginning on or
			 after January 1, 1969, shall be computed under the accrual method of
			 accounting. Under ORS
			 316.685, an individual's federal
			 income tax for the year must first be computed. The amount of federal income
			 tax for that year will be the taxpayer's deduction on the Oregon income tax
			 return for the same year. Time of actual payment will not be
			 significant.
(2) For tax years
			 beginning January, 1979, or later, any additional federal tax for a prior year
			 shall be deducted when the tax is paid or when the adjustment is finally
			 determined, whichever is later.
(3)
			 If a person receives a refund of federal income taxes previously deducted on an
			 Oregon return, the amount received shall be added to income in the year in
			 which the refund was received. However, a taxpayer should add only those
			 refunds for which a prior tax benefit has been received.
(4) Federal Tax Deduction:
(a) For tax years beginning on or after
			 January 1, 1987, the federal tax deduction on each return is limited to the
			 lesser of:
(A) The amount of federal tax
			 accrued attributable to the current year; or
(B) $3,000 ($1,500 if married filing
			 separately).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0537 - Adjustment of Federal Tax Liability

Current through Register Vol. 63, No. 7, July 1, 2024
The federal tax liability accrued shall be the correct federal
				tax based on all information on the return. If, during processing, the
				Department recomputes and adjusts the federal tax liability, the adjusted tax
				shall be the amount accrued for that year.
Example
			 1
:
Because of a computation error on their joint
			 federal return, A and B overstated their federal tax liability on both their
			 federal and Oregon returns. When the Department processed the return, the
			 federal tax liability was recomputed and reduced from the $500 reported on the
			 return to $300. The $300 is the 1979 tax accrued and deducted in 1979. If the
			 taxpayers receive a federal refund for the same $200, that amount should not be
			 added to income in the year received.
Example
			 2
:
On their 1979 return, A and B claimed a federal
			 tax subtraction of $1,000, which was the amount of federal tax withheld from
			 their wages. Their federal tax liability was actually $2,500. When the
			 Department processes the return, the federal tax deduction shall be increased
			 to $2,500.
Example 3
:
A and B claimed a federal tax deduction of $5,000 for 1979. When
			 their Oregon return was processed, the Department computed their correct
			 federal tax liability to be $6,000. Their 1979 federal tax accrued in 1979 is
			 $6,000.
In 1980, they are required to pay the additional federal tax of
				$1,000. Since the taxpayers have already received a benefit for the additional
				1979 tax, they cannot deduct it in 1980.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.685
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0545 - Election to Include Child's Unearned Income - Addition Required

Current through Register Vol. 63, No. 7, July 1, 2024
An addition to federal taxable income is required for taxpayers
				who elect to include a minor child's unearned income on their federal return.
				For federal purposes, unearned income in excess of a dependent's standard
				deduction, but less than twice that amount, is taxed at a special rate on a
				separate schedule and is not included in taxable income of the parent. For
				Oregon, this amount must be added to federal taxable income. The excess
				unearned income already included in the parent's federal taxable income
				requires no addition to the parent's return.
Example 1
:
Bob and Phyllis file
			 a joint federal return for tax year 1997. Their son Ray has $1,700 interest
			 income from a trust account. Bob and Phyllis elect to include Ray's unearned
			 income in excess of the $650 exclusion on their 1997 federal return. For
			 federal purposes, $650 is taxed at a special rate and $400 is included in
			 taxable income. For Oregon, Bob and Phyllis must add $650 to federal taxable
			 income. This is the $650 of Ray's unearned income that was taxed at the special
			 federal rate. Since the remaining $400 is included in federal taxable income,
			 no addition is required for this amount.
Example
			 2
:
Assume the same facts above, except that Ray's
			 unearned income is only $750. For federal purposes, Bob and Phyllis exclude the
			 first $650. The remaining $100 is taxed at the special federal rate. For
			 Oregon, Bob and Phyllis must add $100 to federal taxable income.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.687
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0550 - Special Oregon Medical Subtraction

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Eligible Expenses. Expenses eligible for
			 this subtraction are those authorized under IRC §213. Medical and dental
			 expenses not allowed for this subtraction include expenses:
(a) Otherwise deducted in the calculation of
			 Oregon taxable income for any tax period; or
(b) Paid on behalf of any other individual
			 who is not an eligible taxpayer or eligible spouse of the taxpayer under ORS
			 316.693.
Example 1: Sam (age 66) and Rebecca (age 60)
			 file a joint return and claim Rebecca's 80-year-old mother as a dependent.
			 During the year, Sam and Rebecca paid $4,000 in medical and dental expenses:
			 $1,000 for Sam, $1,000 for Rebecca and $2,000 for Rebecca's mother. Sam's
			 medical expenses are the only medical expenses that qualify for the special
			 Oregon medical subtraction because Rebecca does not meet the age requirement
			 and Rebecca's mother is a dependent.
Example
			 2: Shannon and Dustin, both age 66, file a joint return with
			 Oregon itemized deductions. During the year, Shannon and Dustin paid $18,900 in
			 unreimbursed medical and dental expenses: $6,900 for self-employed health
			 insurance premiums (claimed on the front of Form 1040), $10,000 for health
			 insurance for two employees (claimed on Schedule C), and $2,000 of unreimbursed
			 medical and dental expenses (claimed on Schedule A, line 1). Only the medical
			 and dental expenses on Schedule A, line 1 ($2,000) can be used in the
			 calculation of eligible expenses for the special Oregon medical subtraction
			 because deduction for the self-employed health insurance was already used in
			 the calculation of Oregon taxable income and employee insurance is not an
			 eligible expense.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0555 - Modification of Federal Taxable Income: Itemized vs. Standard Deduction

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The election of
			 an Oregon taxpayer to itemize or claim a standard deduction is independent of
			 the federal election. Beginning on or after January 1, 1978, a taxpayer may
			 claim the greater of the Oregon standard deduction or net itemized
			 deductions
(2) The standard
			 deduction is zero for Oregon taxpayers in the following cases
(a) Married persons filing separate returns
			 and their spouse itemizes;
(b)
			 Nonresident noncitizens of the United States;
(c) Individuals making a return for a period
			 of less than 12 months on account of a change in annual accounting
			 period;
(d) Estates and
			 trusts;
(e) A common trust
			 fund;
(f) A partnership.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0557 - Modification of Federal Taxable Income: Oregon Income Tax Claimed as an Itemized Deduction

Current through Register Vol. 63, No. 7, July 1, 2024
Beginning in tax year 1991, if the taxpayer itemizes deductions
				for Oregon, the itemized deductions will be subject to the same phase-out
				requirement as required for federal income tax purposes under IRC Section 68.
				Oregon law allows federal itemized deductions, after the phase-out, reduced by
				any Oregon income tax that has been itemized for federal income tax purposes.
				To determine the amount of phased-out Oregon income tax that must be removed
				from total itemized deductions, taxpayers will use the following formula:
				[Formula not included. See PDF link below.]
Publications: The publication(s) referred to or incorporated
				  by reference in this rule is available from the Department of Revenue pursuant
				  to ORS 183.360(2) and
				  ORS 183.355(6).
To view tables referenced in rule text,
click here to view
				  rule.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.695
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0559 - Modification of Federal Taxable Income: Previously Taxed Contributions to Pension or Annuity

Current through Register Vol. 63, No. 7, July 1, 2024
If part of the contributions toward the purchase of a pension
				or annuity was taxed by the state of Oregon and not taxed by the federal
				government, that part taxed by Oregon shall be subtracted from federal taxable
				income on the Oregon return. The subtraction allowed by this section shall be
				taken each year to the extent any amount is included in federal taxable income
				until the total amount taxed by Oregon and not taxed by the federal government
				in years beginning prior to January 1, 1969, has been recovered. Thereafter,
				the distribution will be taxed for Oregon income tax purposes in the same
				manner and amount as taxed for federal purposes.
Example:
A retired employee began receiving
				benefits from a pension plan on January 1, 1975. In tax years beginning prior
				to January 1, 1969, Oregon taxed $3,000 of the contributions to the pension
				plan. None of the contributions were taxed for federal purposes. The taxpayer
				is receiving $2,000 each year, all of which is taxable for federal purposes. In
				1975 the taxpayer will subtract $2,000 and in 1976 $1,000 from federal taxable
				income in arriving at Oregon taxable income. In subsequent years, Oregon will
				tax the same amount taxed for federal purposes.
This section applies to tax years ending on or after September
				13, 1975.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.695