Oregon Statutes - Chapter 316 - Personal Income Tax - Section 316.872 - Deferral of gain on sale of small business securities.

(1) If a small business security owned by a taxpayer is sold by the taxpayer, and within six months from the date of sale, another small business security is purchased by the taxpayer, gain from the sale shall only be recognized to the extent that the sales price of the small business security sold exceeds the cost of purchasing the new small business security.

(2) Where the purchase of a new small business security results, under subsection (1) of this section, in the nonrecognition of gain on the sale of an old small business security, in determining the basis of the new small business security, the basis shall be reduced by an amount equal to the amount of the gain not so recognized on the sale of the old small business security.

(3) Federal taxable income shall be modified to the extent necessary to carry out the provisions of this section. [1985 c.715 §3; 1987 c.647 §15]

Note: Section 4, chapter 715, Oregon Laws 1985, provides:

Sec. 4. This Act [316.871 and 316.872] applies to small business securities acquired during tax years beginning on or after January 1, 1986, and prior to January 1, 1990. [1985 c.715 §4]

Note: Section 16, chapter 647, Oregon Laws 1987, provides:

Sec. 16. The amendments to section 3, chapter 715, Oregon Laws 1985 [316.872], by section 15 of this Act apply to small business security acquired during tax years beginning on or after January 1, 1986, and prior to January 1, 1990. [1987 c.647 §16]

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Last modified: August 7, 2008