Oregon Statutes - Chapter 316 - Personal Income Tax - Section 316.884 - Deferral of gain for tax years beginning in 1996; applicability of ORS 316.873 to 316.884; modifications.

(1) For gain incurred from the sale or other disposition of a capital asset in tax years beginning on or after January 1, 1996, and before January 1, 1997, ORS 316.873 to 316.884 apply, as modified by this section.

(2) A taxpayer may defer recognition of gain on the sale or other disposition of a capital asset as provided for under ORS 316.874 (2), except that the reinvestment must be in a qualified business interest or a qualified business asset.

(3) Recognition of gain may be deferred under this section only if the taxpayer’s reinvestment:

(a) Consists of a qualified business interest in a C corporation; or

(b) Relates to a qualified business activity in which the taxpayer materially participates, as that term is defined in section 469 of the Internal Revenue Code and the regulations thereunder.

(4) For purposes of calculating the amount of gain that shall be considered to be reinvested under this section, ORS 316.874 (2) shall not apply and the amount of gain that shall be considered to be reinvested shall be the lesser of:

(a) The amount of the gain incurred from the sale or other disposition of a capital asset by the taxpayer; or

(b) The amount of the reinvestment. [1995 c.809 §12]

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Last modified: August 7, 2008