(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.
Notes
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
