reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0040 - Administrative and Judicial Interpretations

Current through Register Vol. 63, No. 7, July 1, 2024
As used in ORS
				316.032(2)"administrative
				and judicial interpretations of the federal income tax law" include
				interpretive regulations promulgated by the Secretary of the Treasury, Revenue
				Rulings and Revenue Procedures issued by the Commissioner of Internal Revenue,
				and decisions of the federal courts interpreting those provisions of the
				Internal Revenue Code that are incorporated into Oregon law under ORS
				316.007, regardless of the date
				of promulgation or issuance of the regulation, ruling, procedure or
				decision.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.032
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0043 - Qualified Business Income Reduced Tax Rate (QBIRTR)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions. For purposes of ORS
			 316.043 and this rule:
(a) "Employee" means an individual in the
			 service of another under any contract of hire, express or implied, oral or
			 written, where the person for whom the service is performed has the power or
			 right to control and direct the individual in the material details of how the
			 work is to be performed.
(b)
			 "Disregarded Entity" means an entity with only one owner that is not recognized
			 for tax purposes as an entity separate from its owner.
(c) "Independent contractor" is a person who
			 performs services for another but is not an employee.
(d) "Original return" is the first return
			 filed for the tax year or the latest subsequent return filed by the due date of
			 the return. If a timely extension was filed, the due date is the extended due
			 date.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0045 - Taxable Income of Nonresidents and Part-year Residents

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The taxable
			 income of a nonresident is the taxpayer's federal taxable income from Oregon
			 sources as defined in ORS
			 316.127, with the modifications
			 provided in ORS Chapter 316 and other Oregon laws as they relate to
			 nonresidents. In computing taxable income, nonresident taxpayers are allowed a
			 proportionate share of all deductions, with required modifications. This
			 includes the accrued federal tax deduction, and itemized deductions or the
			 optional standard deduction. The fraction to be used in making the proration of
			 deductions is provided in OAR 150-316.117-(A).
(2) The taxable income of a part-year
			 resident is the taxpayer's federal taxable income, as defined in the laws of
			 the United States, modified and adjusted by ORS Chapter 316 and other Oregon
			 laws. The tax on the entire taxable income of part-year residents is multiplied
			 by the fraction provided in OAR 150-316.117-(A) to determine the tax on income
			 derived from Oregon sources.
(3)
			 For purposes of determining the proration of tax under ORS
			 316.117, a part-year Oregon
			 resident includes in Oregon source income the sum of:
(a) All guaranteed payments and taxable cash
			 distributions from a partnership or S corporation received while the partner or
			 shareholder was an Oregon resident, plus
(b) Payments or distributions received from
			 an entity that has business activity in Oregon while the taxpayer was not an
			 Oregon resident. The payments or distributions are subject to the allocation
			 and apportionment provisions of ORS
			 314.605 to
			 314.675.
Example:
Joe was a California resident all of 2000
				and a partner in a California partnership. The partnership has no property,
				payroll, or sales in Oregon. Joe moved to Oregon March 1, 2001. He files
				calendar year returns. He receives $1,000 each month as a guaranteed payment.
				The payments received through February, 2001 are not Oregon source income
				because they were received prior to the date Joe became an Oregon resident from
				an entity with no business activity in Oregon.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0050 - Farm Capital Gain

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Definitions. For purposes of ORS
			 316.045 and this rule:
(a) "Substantially complete termination"
			 means the taxpayer is:
(A) No longer
			 involved, directly or indirectly, in a trade or business engaged in farming, or
(B) No longer owns, directly or
			 indirectly, property used in the trade or business of farming.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0060 - Taxable Income of Resident

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Definition. The taxable income of a resident of this state is taxable income as
			 defined in the laws of the United States, modified and adjusted by ORS Chapter
			 316 and other laws of this state applicable to personal income taxation. Such
			 laws have the general effect of incorporating all the provisions of the federal
			 Internal Revenue Code with regard to the measurement of personal taxable income
			 except as otherwise specifically provided by Oregon law. For example, the
			 Oregon standard deduction is not deductible in the same amount as the federal
			 standard deduction amount.
(2)
			 Oregon Adjusted Gross Income Defined.
(a) For
			 tax years beginning prior to January 1, 1985, Oregon adjusted gross income is
			 federal adjusted gross income as defined under IRC Section 62 as of the dates
			 specified in ORS 316.012. Oregon adjusted gross
			 income incorporates any differences between the federal definition of adjusted
			 gross income and the Oregon definition of adjusted gross income for any given
			 year.
(b) For tax years beginning
			 after December 31, 1984, Oregon adjusted gross income is federal adjusted gross
			 income without any of the modifications, additions, or subtractions required
			 under ORS Chapter 316.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0065 - Social Security and Railroad Retirement Benefits Eligible for Subtraction

Current through Register Vol. 63, No. 7, July 1, 2024
A subtraction from federal taxable income is allowed for social
				security and tier I railroad retirement benefits as defined under Internal
				Revenue Code Section 86. Other benefits paid by the Railroad Retirement Board
				(tier II, windfall, vested dual, supplemental annuities, unemployment, and
				sickness) are also allowed as a subtraction from federal taxable income. In all
				cases, the subtraction is allowed only to the extent that such benefits are
				included in federal taxable income.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.054
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0070

Current through Register Vol. 63, No. 7, July 1, 2024
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).
Attachment referenced is not included in rule text.
Click here for PDF of
				  attachment
.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.078
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0080 - Credit for Income Taxes Paid to Another State

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
General
: A taxpayer may
			 claim a credit against income tax imposed under Chapter 316 when:
(a) Another state has jurisdiction to impose
			 an income tax; and
(b) The other
			 state imposes an income tax on an item of income that is also subject to Oregon
			 tax.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0082 - Credit for Taxes Paid to Another State When Paid by a Pass-Through Entity

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An individual
			 who owns an interest in a pass-through entity may claim a credit for tax paid
			 to another state by the entity if:
(a) The
			 individual is an Oregon resident;
(b) The portion of the tax for which credit
			 is claimed is computed upon the proportionate share of the entity's income
			 which is taxable to the individual under ORS
			 316.048; and
(c) An addition is made on the individual's
			 Oregon return for the individual's share of any tax paid or accrued, that
			 relates to the credit taken, and that is deducted on the entity's or
			 individual's federal income tax return in determining federal taxable income.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0084 - Credit for Income Taxes Paid to Another State - Computation

Current through Register Vol. 63, No. 7, July 1, 2024
(1) General: This rule explains the
			 computation of the credit for taxes paid to another state on mutually taxed
			 income.
(a) Residents: An Oregon resident is
			 allowed a credit for taxes paid to another state on mutually taxed income if
			 the other state does not allow the credit. See section (3) of this rule for
			 information on calculating the credit for an Oregon resident.
Example 1: Bob, an Oregon resident, receives partnership income
				derived from Virginia sources and joins in a multiple nonresident filing with
				that state. If Virginia does not allow a credit for taxes paid to Oregon on the
				multiple nonresident tax return, then Bob may claim a credit on the Oregon
				resident return.
Example 2: Elizabeth, an Oregon resident, receives income from
				California property. Because California allows Oregon residents to claim a
				credit for mutually taxed income on the California nonresident return,
				Elizabeth is not allowed to claim the credit on the Oregon resident
				return.
(b) Nonresidents:
			 Under ORS 316.131, an Oregon nonresident is allowed the credit if the state of
			 residence allows Oregon residents to claim a credit for mutually taxed income
			 on the nonresident return filed with that state. See section (4) of this rule
			 for information on calculating the credit for an Oregon nonresident.
(c) Part-year residents: A person who is a
			 resident for a part of the taxable year and a nonresident for the rest of the
			 year figures the credit under section (3) of this rule for the portion of the
			 year the individual was a resident and under section (4) of this rule for the
			 nonresident portion of the year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0086 - Credit for Income Taxes Paid to Other States - Proof Required and Procedure for Obtaining the Credit

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 taxpayer must retain in their tax records and provide to the department upon
			 request the following items:
(a) A complete
			 copy of the other state's income tax return; and
(b) Proof of payment of the tax, such as:
(A) A copy of the check written to pay the
			 tax at the time the other state's return is filed;
(B) Copies of W-2 statements verifying
			 withholding paid to the other state;
(C) A copy of a cashier's check or other
			 negotiable instrument;
(D) A copy
			 of a canceled check showing payment of tax or estimated tax payments; or
(E) A receipt of tax payment.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0088 - Addition of Taxes Paid to Another State Claimed as an Itemized Deduction

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If a taxpayer
			 claims a credit for taxes paid to another state and the tax is also included as
			 an itemized deduction, the taxpayer must restore to Oregon income the lesser
			 of:
(a) The amount of the other state's net
			 tax liability for the year in which the Oregon credit is claimed; or
(b) The amount of the other state's tax for
			 that year that is included in itemized deductions.
Example
			 1
:
On his Oregon tax return, Joe claims a credit for
			 taxes paid to Idaho of $100. His tax liability to Idaho for the same year is
			 $150. He also claims an itemized deduction of $200 for taxes that Idaho
			 withheld from his wages. Joe must add $150 to Oregon income, which is the
			 lesser of his Idaho tax liability or the amount claimed as an itemized
			 deduction for that year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0090 - Credit for Duplicative State Taxation Relating to Different Years

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If Oregon and
			 another state impose a tax on the same income in different years or the other
			 state's tax is due in a year subsequent to the year or years to which it was
			 originally related, the taxpayer may ask the department to allow a credit that
			 provides relief from taxation of the same income by Oregon and the other
			 state.
(2) The request for a credit
			 under this subsection must be in writing. It must include:
(a) A complete copy of the other state's
			 income tax return(s); and
(b)
			 Proof of payment of the tax, such as:
(A) A
			 copy of the canceled check written to pay the tax at the time the other state's
			 return is filed;
(B) Copies of the
			 W-2 statements verifying the withholding paid to the other state;
(C) A copy of a cashier's check or other
			 negotiable instrument;
(D) A copy
			 of a canceled check showing payment of tax or estimated tax payments; or
(E) A receipt of tax payment.
(c) An explanation of
			 the reason for the duplicative taxation. The following are some examples of
			 explanations:
(A) Idaho law required
			 recapture in 1995 of credits that previously reduced the Oregon credit in 1991
			 through 1994.
(B) Current federal
			 adjusted gross income includes installment gain that was taxed in full by
			 Maryland in 1998.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0115 - Disabled Child Exemption Credit

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For tax years beginning on or after
			 January 1, 2005, an additional personal exemption credit is allowed for
			 dependent children who are disabled on the last day of the tax year.
(2) For tax years beginning before January 1,
			 2005, an additional personal exemption credit is allowed for dependent children
			 who are age 17 or younger and are disabled on the last day of the tax year.
(3) For all years, the child with
			 a disability must be certified annually by a state department of education to
			 be eligible for early intervention services or an individualized education
			 program (IEP) under the federal program for Individuals with Disabilities
			 Education Act (IDEA).
(4) Upon
			 request of the department, the taxpayer claiming the personal exemption credit
			 for a disabled child must provide the first sheet of the applicable year's IEP
			 or Individualized Family Service plan showing the child's name, disability, and
			 education eligibility for each year the credit is claimed.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.099
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0120 - Credit for Political Contributions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) In General: To qualify for the political
			 contribution credit, the contribution must be a voluntary contribution of money
			 made to one of the following:
(a) A major
			 political party or its political committees, or a minor political party or its
			 political committees;
(b) A
			 candidate for federal, state or local office; or
(c) A political committee. Each of these
			 categories is discussed in more detail in the following
			 sections.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0125 - Credit for the Gain on the Sale of a Residence Taxed by Another State

Current through Register Vol. 63, No. 7, July 1, 2024
A credit will be allowed if the gain on the sale of a
				taxpayer's personal residence is taxed by both Oregon and another state or
				country. The credit is the lesser of:
(1) Mutually taxed gain:
Total income on - x - Other state's tax
Other state's return - after credits, or
(2) 8 percent of the gain taxed by the other
			 state.
Mutually taxed gain is the total gain reduced by any allowable
				deductions or exclusions (i.e., capital gains deduction, differences in
				allowable depreciation due to business use of home, etc.).
Total income on other state's return is the other state's
				taxable income before subtractions for itemized deductions (or standard
				deduction) and exemptions.
To claim the credit, the taxpayer must send a copy of the other
				state or country's return and proof of payment.
A taxpayer may not claim both this credit and a credit under
				ORS 316.082 or
				316.131 for taxes paid on the
				same gain.
Attachment referenced is not included in rule text.
Click here for PDF of
				  attachment
.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.109
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0130 - Credit for Installation of Alternative Energy Devices

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As provided by ORS
			 469B.103, the Oregon Department
			 of Energy administers provisions related to the eligibility, verification and
			 certification of an alternative energy device for purposes of the tax credit
			 under ORS 316.116. Refer to ORS
			 469B.100 through
			 469B.118 and Oregon
			 Administrative Rules 330-070-0010 through 330-070-0097 or contact the
			 Department of Energy for additional information.
(2) Each taxpayer that qualifies for the
			 credit may apply the allowable credit to the current year's tax liability. Any
			 unused credit balance may be applied to the following year's tax liability for
			 up to five successive years. If
two or more
taxpayers qualify
			 for the credit,
they must apportion the allowable credit between
			 them
based on their investment in the device or ownership in the
			 property.
(3) No adjustment to the
			 basis of property is required as a result of claiming a credit for an
			 alternative energy device.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.116
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0135 - Proration of Income and Deductions for Nonresidents and Part-Year Residents

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For tax
			 years beginning on or after January 1, 1983, the numerator of the fraction is
			 the taxpayer's federal adjusted gross income from Oregon sources, with the
			 Oregon modifications to that income, which relate to adjusted gross
			 income.
(2) The denominator of the
			 fraction is the taxpayer's federal adjusted gross income, from all sources,
			 with the Oregon modifications to that income, which relate to adjusted gross
			 income.
(3) For the fiduciary
			 returns of estates and trusts, the numerator of the fraction is the federal
			 taxable income of the fiduciary from Oregon sources, with the Oregon
			 modifications to that income. The denominator of the fraction is the federal
			 taxable income of the fiduciary, from all sources, with Oregon modifications to
			 that income.
(4) Use the following
			 list to help determine which Oregon modifications relate to adjusted gross
			 income. [List not included. See ED. NOTE.]
(5) Under no circumstances may the percentage
			 exceed 100 percent.
(6) If the
			 taxpayer has positive modified Oregon income and negative or zero modified
			 federal adjusted gross income, the allowable percentage is 100 percent. If the
			 taxpayer's modified federal adjusted gross income from Oregon sources and
			 modified federal adjusted gross income are both losses, the allowable
			 percentage will be computed as follows:
(a)
			 If the Oregon loss is smaller than the federal loss, 100 percent.
(b) If the Oregon loss is greater than the
			 federal loss, divide the federal loss by the Oregon loss.
Example 1
:
A taxpayer has
			 modified federal adjusted gross income from Oregon sources of ($100) and
			 modified federal adjusted gross income of ($1,000). Since the Oregon loss is
			 less than the federal loss, the percentage is 100 percent.
Example 2
:
A taxpayer has
			 federal adjusted gross income from Oregon sources of ($1,000) and federal
			 adjusted gross income of ($100). The percentage is 10
			 percent.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0145 - Proration for Pass-through Entity Income of Part Year Oregon Residents

Current through Register Vol. 63, No. 7, July 1, 2024
A part-year Oregon resident with an ownership interest in a
				partnership or S corporation includes in Oregon adjusted gross income the sum
				of:
(1) All income derived from the
			 ownership interest while the taxpayer was an Oregon resident. The amount
			 included in Oregon income must be determined consistently with Internal Revenue
			 Code sections 1366, 1377, 702, 704 and the corresponding Treasury Regulations
			 and must reasonably reflect the taxpayer's share of income derived from the
			 taxpayer's ownership interest, plus
(2) That portion of income derived from the
			 ownership interest as a nonresident from an entity with business activity in
			 Oregon. The taxpayer's share of the income is subject to the allocation and
			 apportionment provisions of ORS
			 314.605 to
			 314.675 during the time that the
			 taxpayer was not an Oregon resident.
Example
			 1
:
Ralph was an Oregon resident who moved to Nevada
			 on August 16. During the same year, Ralph was a shareholder of an Idaho S
			 corporation with no business activity in Oregon. From January 1 to March 31, he
			 owned 250 of 500 total issued shares. Additional shares were issued on April 1,
			 giving Ralph 300 of 800 total shares. On July 1, more shares were issued and
			 traded, giving him 450 of 1000 total shares. The S corporation's federal income
			 is $365,000; Ralph's share of federal income is $161,925. Ralph determines his
			 Oregon income of $99,825 as follows:
Step 1. S corporation income assigned to each day:
$365,000 / 365 days = $1,000
Step 2. Figure per share, per day amount (per day amount /
				outstanding shares):
Jan 1-Mar 31 - $1,000 per day/500 shares = $2.00 per share, per
				day
Apr 1-Jun 30 - $1,000 per day/800 shares = $1.25 per share, per
				day
Jul 1-Dec 31 - $1,000 per day/1000 shares = $1.00 per share,
				per day
Step 3. Figure shareholder income (per share, per day):
Jan 1-Mar 31 - 90 days x 250 shares x $2.00 = $45,000
Apr 1-Jun 30 - 91 days x 300 shares x $1.25 = $34,125
Jul 1-Aug 15 - 46 days x 450 shares x $1.00 = $20,700
Aug 16-Dec 31 - Nonresident, no Oregon activity - $0
Oregon income: $99,825
Example 2
:
Assume the same
			 facts as in Example 1, except that the S corporation also did business in
			 Oregon and computed an Oregon apportionment percentage of 40 percent. Ralph's
			 proportional share of this income reported to Oregon for the entire year is
			 calculated as follows:
Jan 1-Mar 31 - 90 days x 250 shares x $2.00 = $45,000
Apr 1-Jun 30 - 91 days x 300 shares x $1.25 = $34,125
Jul 1-Aug 15 - 46 days x 450 shares x $1.00 = $20,700
Aug 16-Dec 31 - 138 days x 450 shares x $1.00 x 40% = $24,840
Oregon income: $124,665
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0150 - Separate or Joint Federal Returns for Spouses in a Marriage

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For tax years
			 beginning on or after January 1, 1987, ORS
			 316.122 contains exceptions to
			 the general rule that the filing status of the federal return, whether joint or
			 separate, determines the filing status on the Oregon return. If a joint federal
			 income tax return is filed and one or both of the spouses is not a full-year
			 resident, each spouse must file a separate state return unless they elect to
			 file a joint state return.
(2) The
			 income to be included by the spouses in computing their joint Oregon taxable
			 income is determined as follows:
(a) A
			 full-year resident spouse shall include all income received during the year as
			 determined in OAR 150-316-0060.
(b)
			 A part-year resident spouse shall include:
(A) For the portion of the year the spouse is
			 a resident all income as determined under OAR 150-316-0060.
(B) For the portion of the year the spouse is
			 a nonresident the Oregon source income as determined under ORS
			 316.127 and the rules
			 thereunder.
(c) A
			 nonresident spouse shall include all Oregon source income as determined under
			 ORS 316.127 and the rules
			 thereunder.
(d) The Oregon source
			 net operating loss of a part-year resident included in the filing of a joint
			 return is determined as follows:
(A) For the
			 portion of the year the spouse is a resident any loss determined under OAR
			 150-316-0035.
(B) For the portion
			 of the year the spouse is a nonresident any loss determined under OAR
			 150-316-0035 as it relates to nonresidents.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0155 - Nonresident Partners: Guaranteed Payments

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Guaranteed payments paid to nonresident
			 partners of a partnership that has business activity in the state of Oregon are
			 treated as a distributive share of partnership income for Oregon tax purposes.
			 In order to determine the income attributable to Oregon sources, each
			 nonresident partner's entire distributive share, including the guaranteed
			 payments, is then subject to the allocation and apportionment provisions of ORS
			 314.605 to
			 314.675.
Example 1
:
Frank is a 25
			 percent partner in the law firm DC & H, Associates, a calendar year
			 partnership. DC & H's main office is in Washington, but it also has a
			 branch office in Oregon. Frank lives in Seattle and works in the Washington
			 branch of the firm.
For tax year 1992, Frank received $100,000 in guaranteed
				payments from the partnership. Frank's 25 percent share of partnership profits
				after the deduction of guaranteed payments was $50,000. DC & H calculated
				an Oregon apportionment percentage of 20 percent. Frank's 1992 Oregon source
				income attributable to the law firm is calculated as follows:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0157 - Nonresident Partners: Other Methods of Allocation and Apportionment

Current through Register Vol. 63, No. 7, July 1, 2024
(1) ORS
			 314.605 to
			 314.667 are designed to allocate
			 and apportion to Oregon, in a fair and equitable manner, a nonresident
			 partner's items of partnership income, gain, loss and deduction attributable to
			 a business, trade, profession or occupation carried on partly within and partly
			 without the state of Oregon. If the methods provided under those sections do
			 not so allocate and apportion these items, the department may permit a
			 nonresident partner to allocate and apportion those items under an alternative
			 method as proposed by the partner. An alternative method will be allowed only
			 in limited and specific cases. ORS
			 316.124(4) may
			 be invoked only in unusual fact situations (which ordinarily will be unique and
			 nonrecurring). These are situations which will generally violate a nonresident
			 partner's rights under the constitution of Oregon or of the United
			 States.
(2) An application to use
			 an alternative method of allocation and apportionment must be made in writing.
			 The request must a) specify why the standard method does not fairly represent
			 the extent of the partnership's Oregon business activity; b) specify how the
			 standard method of allocation and apportionment violates the nonresident
			 partner's constitutional rights; and c) must include a detailed description of
			 the alternative method.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.124
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0165 - Gross Income of Nonresidents; Personal Services

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Personal service.
(a) Except as provided in section (2) of this
			 rule, the gross income of a nonresident (who is not engaged in the conduct of
			 the nonresident's own trade or business, but receives compensation for services
			 as an employee) includes compensation for personal services only to the extent
			 that the services were performed in this state.
(b) Compensation for personal services
			 performed by a nonresident employee wholly outside this state and in no way
			 connected with the management or conduct of a business in this state is
			 excluded from gross income. This compensation is excluded even if payment is
			 made from a point within this state or the employer is a resident individual,
			 partnership, or corporation.
(c)
			 Compensation for personal services performed by a nonresident wholly within
			 this state is included in gross income although payment is received at a point
			 outside this state or from a nonresident individual, partnership, or
			 corporation.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0167 - Gross Income of Nonresidents; Pensions and Retirement Income Received by Oregon Domiciliaries

Current through Register Vol. 63, No. 7, July 1, 2024
The provisions of this rule apply to pension and retirement
				income received after December 31, 1999, by persons who are domiciled in Oregon
				but who are taxed as nonresidents under Oregon law.
(1)
Definitions
.
(a)
Qualified Employer Retirement
			 Benefit Plan
. "Qualified employer retirement benefit plan" means any
			 employer-related plan that is defined and administered pursuant to part I of
			 subchapter D of chapter 1 of subtitle A of the Internal Revenue Code. This
			 includes, but is not limited to, the following employer administered plans:
			 qualifying pension and profit sharing plans, annuity plans, cash or deferred
			 compensation arrangements, or tax-shelter annuity plans.
(b)
Qualified Employee Retirement
			 Benefit Plan
. "Qualified employee retirement benefit plan" means any
			 plan established and maintained solely by an employee or on the employee's
			 behalf that is defined and administered pursuant to part I of subchapter D of
			 chapter 1 of subtitle A of the Internal Revenue Code. This includes, but is not
			 limited to, the following employee-related plans: individual retirement
			 accounts, individual retirement annuities, simplified employee pension plans,
			 or self-employed retirement plans.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0169 - Gross Income of Nonresidents; Apportionable Income

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
(a)
			 General. The gross income of a nonresident (other than one who is employed by
			 another, as distinguished from doing business on the nonresident's own account)
			 from a business, trade, profession or occupation (including independent
			 contractor) is determined in the same manner as is the gross income of a
			 resident from a similar activity, but includes only income from the business,
			 trade, profession or occupation carried on in this state. Net income from
			 Oregon sources shall be determined by apportionment in a manner consistent with
			 ORS 314.605 through
			 314.667 and the rules adopted
			 thereunder.
(b) Exception: Various
			 federal laws affect the application of Oregon tax laws to income received by
			 nonresidents from rail, motor, air and water carriers. See OAR
			 150-316-0173.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0171 - Gross Income of Nonresidents; Other Income and Sale of Property

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
Income
			 from intangible personal property.
(a)
Business situs.
Intangible personal property, including money or credits, of a nonresident has
			 a situs for taxation in Oregon when used in the conduct of the taxpayer's
			 business, trade, or profession in Oregon. Income from the use of such property,
			 including dividends, interest, royalties, and other income from money or
			 credits, constitutes a part of the income from a business, trade, or profession
			 carried on in Oregon when such property is acquired or used in the course of
			 such business, trade, or profession as a capital or current asset and is held
			 in that capacity at the time the income arises.
(b) If a nonresident pledges stocks, bonds,
			 or other intangible personal property in Oregon as security for the payment of
			 indebtedness, taxes, etc., incurred in connection with a business in this
			 state, the property has a business situs here. Thus, if a nonresident maintains
			 a branch office here and a bank account on which the agent in charge of the
			 branch office may draw for the payment of expenses in connection with the
			 activities in this state, the bank account has a business situs here. If
			 intangible personal property of a nonresident has acquired a business situs
			 here, the entire income from the property, including gains from the sales of
			 the property, regardless of where the sale is consummated, is income from
			 sources within this state and is taxable to the nonresident.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0173 - Gross Income of Nonresidents; Federal Laws Affecting Nonresident Employees of Motor, Rail, Air and Water Carriers

Current through Register Vol. 63, No. 7, July 1, 2024
(1) General: Various federal laws affect the
			 application of Oregon tax laws to nonresident employees of motor carriers, rail
			 carriers, and air carriers. Specific requirements for motor carriers, rail
			 carriers, and air carriers are discussed separately below. For purposes of this
			 rule the following definitions apply to motor carriers, rail carriers, and air
			 carriers:
(a) "Person" means a corporation,
			 company, association, firm, partnership, or individual.
(b) "Common carrier" means:
(A) Any person who transports persons or
			 property for hire or who publicly purports to be willing to transport persons
			 or property for hire; or
(B) Any
			 person who leases, rents or otherwise provides a motor vehicle to the public
			 and who in connection therewith in the regular course of business provides,
			 procures or arranges for, directly, indirectly or by course of dealing, a
			 driver or operator therefor.
(c) "Regularly assigned duties in more than
			 one state" means duties that are performed on a regular basis in more than one
			 state, e.g., daily, weekly, or monthly assignment. Duties that are performed on
			 an "on-call" or "as-needed" basis, or duties that are performed on a sporadic
			 or intermittent basis during the year, are not considered to be "regularly
			 assigned duties."
(d) "Property"
			 means the cargo or load being transported.
(e) "Exempt" means that the Amtrak Act
			 prohibits the imposition of Oregon income tax.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0175 - Gross Income of Nonresidents; Compensation Received by Nonresident Professional Athletes

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
(a) General. Oregon source income of a
			 nonresident individual who is a member of a professional athletic team includes
			 that portion of such individual's total compensation for services rendered as a
			 member of a professional athletic team during the taxable year which, the
			 number of duty days spent within Oregon rendering services for the team in any
			 manner during the taxable year, bears to the total number of duty days spent
			 both within and without Oregon during the taxable year.
(b) Special rule. Travel days that do not
			 involve either a game, practice, team meeting, promotional caravan or other
			 similar team event are not considered duty days spent in Oregon. However, such
			 travel days shall be considered duty days spent within and without Oregon.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0179 - Student Loan Interest Deduction - for Part-Year and Nonresidents

Current through Register Vol. 63, No. 7, July 1, 2024
Individuals who are allowed a deduction for student loan
				interest for federal purposes shall be allowed a deduction for Oregon purposes.
				The allowable Oregon deduction is limited to a percentage of the federal
				deduction (not to exceed 100 percent). The qualifying interest paid while a
				nonresident of Oregon must be prorated based on the ratio of total Oregon
				source income while a nonresident to total income while a nonresident,
				determined without deduction for student loan interest. The qualifying interest
				paid while a resident is deductible in full. See the example for the alimony
				adjustment under OAR150-316.130(2)(c)(A). The total Oregon deduction cannot
				exceed the amount allowed under federal law.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.127
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0183 - Gross Income of Nonresidents; Retirement Income Derived from Oregon Sources

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Federal law
			 (PL
			 104-95) prohibits states from taxing retirement
			 income received after December 31, 1995, by individuals who are not residents
			 of this state or who are not domiciled in this state.
(a) Individuals who have Oregon as their
			 domicile are taxed on all their retirement income, unless they meet the
			 requirements to be taxed as nonresidents, as provided in ORS
			 316.027(1)(a)(A).
(b) Under Oregon law, Oregon
			 source retirement income received after December 31, 1995, and before January
			 1, 2000, is exempt from tax if the person receiving the income is taxed as a
			 nonresident under ORS
			 316.027(1)(a)(A),
			 regardless of where the person's domicile is located.
(c) Beginning January 1, 2000, Oregon source
			 retirement income is taxable if received by a person who is taxed as a
			 nonresident but who is domiciled in Oregon. See OAR 150-316.127-(B) for
			 information on calculating the amount of the Oregon source retirement income
			 that is subject to tax.
Example 1
:
Sam lived and worked in Oregon until his retirement in 1997. At
			 retirement he gave up his Oregon domicile and moved to Arizona. Following Sam's
			 change of domicile to Arizona, none of Sam's pension income is taxable by
			 Oregon.
Example 2
:
Douglas has lived and worked in Oregon all his life. On January 1, 1999, he
			 retired, sold his personal residence, and took a temporary job working in
			 Alaska. He plans to work for several years and then return to Oregon to live.
			 He has not established a new domicile outside of Oregon, nor does he intend to
			 give up his Oregon domicile. Douglas meets the requirements to be taxed as a
			 nonresident under ORS
			 316.027(1)(a)(A).
			 However, beginning January 1, 2000, his Oregon source pension will be taxable
			 by Oregon because he has retained Oregon as his domicile. Douglas will follow
			 the provisions of OAR 150-316.127-(B) to determine the amount taxable to
			 Oregon.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0195 - Alimony Deduction - for Part-Year and Nonresidents

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For divorce decrees and separation
			 agreements entered into before January 1, 2019, this rule still applies unless
			 the divorce decree or separation agreement is modified after December 31, 2018,
			 and expressly states that the alimony is not deductible to the payer or
			 includible in the income of the recipient. If the divorce decree or separation
			 agreement is entered into after December 31, 2018 this rule will not
			 apply.
(2) Full-year nonresidents
			 shall follow the rules under ORS
			 316.130(2)(c)
			 in determining deductibility of alimony payments.
(3) In determining income from Oregon
			 sources, part-year residents shall not deduct any alimony or separate
			 maintenance payments, as defined in IRC 215(b) and 71(b), made to residents
			 during the portion of the year the part-year resident was a nonresident.
(4) A nonresident's alimony
			 deduction must be prorated for the portion of the year that they are a
			 nonresident of Oregon if they have income from other than Oregon sources. The
			 alimony paid while a nonresident is to be prorated based on the ratio of their
			 Oregon source income while a nonresident to their total income while a
			 nonresident without deduction for alimony. Alimony paid is deductible in full
			 once residency is established.
Example and table attached in PDF.
To view attachments referenced in rule text,
click here to view
				  rule
.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.130 &
				  316.117
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0197 - Nonresident Deduction for Contributions to IRA, Keogh, or Qualified Medical Savings Accounts

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Nonresident
			 individuals who are allowed a deduction for contributions made to Keoghs, SEPs,
			 individual retirement accounts (IRAs), and qualified savings accounts (MSA) for
			 federal purposes shall also be allowed a deduction for Oregon purposes. The
			 deduction for Oregon is limited to a percentage of the federal deduction (not
			 to exceed 100 percent).
(2) For
			 contributions made to a qualified Keogh or SEP plan under section
			 401 of the Internal Revenue Code,
			 the deduction for Oregon is equal to the federal deduction times the ratio of
			 Oregon earned income over earned income from all source. In general, "earned
			 income" is the net earnings from self-employment in a trade, business, or
			 profession in which the taxpayer performs personal service.
(3) For contributions made to an IRA account
			 under section 219 of the Internal Revenue Code,
			 the deduction for Oregon is equal to the federal deduction times the ratio of
			 Oregon compensation over compensation from all sources. In general,
			 "compensation" includes alimony, wages, professional fees, or other amounts
			 derived from or received from personal services rendered and included in gross
			 income for the tax year. It does not include pensions, annuities, or other
			 forms of deferred compensation.
Example:
Assume a nonresident taxpayer had a
				$2,000 IRA deduction for federal purposes. His federal and Oregon wages were
				$40,000 and $20,000, respectively. His Oregon deduction would be equal to
				$1,000 or ($2,000 x (20,000/40,000)).
(4) For contributions made to a MSA under
			 section 220 of the Internal Revenue Code,
			 the deduction for Oregon is equal to the federal deduction times the ratio of
			 Oregon compensation over compensation from all sources.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.130
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0205 - Credit for Taxes Paid to State of Residence

Current through Register Vol. 63, No. 7, July 1, 2024
(1) General: An Oregon nonresident is allowed
			 a credit for taxes paid to the state of residence if the taxpayer's state of
			 residence allows residents of Oregon to claim a credit for mutually taxed
			 income on the nonresident return filed with that state.
Example:
Elizabeth, a California resident,
				receives income from Oregon property. Because California allows Oregon
				residents to claim a credit for mutually taxed income on the California
				nonresident return, Elizabeth is allowed to claim the credit on the Oregon
				nonresident return.
(2)
			 Computation. OAR 150-316.082(2) subsection (4) shall be followed.
(3) Proof required and procedure for
			 obtaining credit. OAR 150-316.082(3) and 150-316.082(1)-(A) shall be followed.
(4) Special filing status. OAR
			 150-316.082(2) subsections (5), (6), (7), and (8) shall be followed.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.131
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0225 - Retirement Income Credit

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Definitions.
(a) Retirement Income.
			 Retirement income includes distributions from any:
(A) U.S. Government pension;
(B) State public pension;
(C) Employee pension benefit plan;
(D) IRA or KEOGH;
(E) Deferred compensation plan;
(F) Employee annuity plan which is included
			 in federal taxable income.