Oregon Statutes - Chapter 316 - Personal Income Tax - Section 316.119 - Proration of part-year resident’s income between Oregon income and other income; alternative proration for pass-through entity items.

(1) Except as provided in subsection (2) of this section, for purposes of ORS 316.117, the adjusted gross income of a part-year resident from Oregon sources is the sum of the following:

(a) For the portion of the year in which the taxpayer was a resident of Oregon, the taxpayer’s entire adjusted gross income.

(b) For the portion of the year in which the taxpayer was a nonresident, the taxpayer’s adjusted gross income derived from sources within this state, as determined under ORS 316.127.

(2) For purposes of ORS 316.117, the adjusted gross income of a part-year resident with federal adjusted gross income that includes an item of income, gain, loss, deduction or credit from a pass-through entity shall include the sum of the following:

(a) The total amount of the item that is taken into account in federal adjusted gross income, multiplied by the ratio of the number of days the taxpayer was a resident of Oregon during the tax year of the entity over the total number of days in the tax year of the entity; and

(b) The total amount of the item that is taken into account in federal adjusted gross income and that is derived from or connected with sources within this state, as determined under ORS 316.127, multiplied by the ratio of the number of days the taxpayer was a nonresident of Oregon during the tax year of the entity over the total number of days in the tax year of the entity.

(3) As used in subsection (2) of this section:

(a) “Pass-through entity” means any entity that is recognized as a separate entity for federal income tax purposes, for which the owners are required to report income, gains, losses, deductions or credits from the entity for federal income tax purposes.

(b) “Tax year of the entity” means the tax year of the pass-through entity that ends within the tax year of the taxpayer. [1993 c.726 §31; 2005 c.55 §1]

Note: Section 2, chapter 55, Oregon Laws 2005, provides:

Sec. 2. The amendments to ORS 316.119 by section 1 of this 2005 Act apply to:

(1) Tax years beginning on or after January 1, 2002; and

(2) Any tax year for which a return is subject to audit or adjustment by the Department of Revenue on or after the effective date of this 2005 Act [November 4, 2005], any tax year for which a return is the subject of an appeal on or after the effective date of this 2005 Act and any tax year for which a claim for refund may be made on or after the effective date of this 2005 Act. [2005 c.55 §2]

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Last modified: August 7, 2008