Or. Admin. Code § 150-316-0045

Current through Register Vol. 63, No. 10, October 1, 2024

Section 150-316-0045 - Taxable Income of Nonresidents and Part-year Residents

(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.

Or. Admin. Code § 150-316-0045

RD 7-1983, f. 12-20-83, cert. ef. 12-31-83; RD 12-1985, f. 12-16-85, cert. ef. 12-31-85; RD 12-1985, f. 12-16-85, cert. ef. 12-31-85; RD 11-1988, f. 12-19-88, cert. ef. 12-31-88; RD 7-1989, f. 12-18-89, cert. ef. 12-31-89, Renumbered from 150-316.037(1)(b); REV 7-2001(Temp), f. & cert. ef. 12-31-01 thru 6-28-02; REV 3-2002, f. 6-26-02, cert. ef. 6-30-02; REV 6-2008, f. 8-29-08, cert. ef. 8-31-08; Renumbered from 150-316.037, REV 60-2016, f. 8-15-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 316.037