(1) In addition to any other modifications to federal taxable income made for purposes of this chapter, and upon the filing by the taxpayer of a declaration described under ORS 316.877 (1), a taxpayer who has income for federal income tax purposes, from gain on the sale or other disposition of a capital asset may defer recognition of all or part of the gain in determining the taxes imposed under this chapter by reinvesting the proceeds of the sale or other disposition in a qualified business interest, qualified investment fund or qualified business asset within six months of the date on which the gain would otherwise have been recognized.
(2) For purposes of ORS 316.873 to 316.884, gain shall be considered to be reinvested in a qualified business interest, qualified investment fund or qualified business asset in the same proportion that the proceeds from the sale or other disposition of the capital asset (net of federal income taxes paid or owing as a result of the sale or other disposition) are reinvested.
(3) Upon the sale or other disposition of a qualified business interest, interest in a qualified investment fund or a qualified business asset with respect to which gain was previously deferred under this section as the result of a prior sale or disposition, the previously deferred gain may continue to be deferred:
(a) Only to the extent that an amount equal to the total of all gain deferred under this section is reinvested in one or more qualified business interests or qualified business assets; and
(b) Only if a new declaration described under ORS 316.877 (1) is filed with the Department of Revenue.
(4) Gain resulting from the sale or other disposition of a qualified business interest, interest in a qualified investment fund or a qualified business asset that the taxpayer may not continue to defer under subsection (1) of this section shall be added to federal taxable income in the manner provided under ORS 316.879 (3).
(5) The Department of Revenue may by rule further refine the method by which a taxpayer determines whether a transaction constitutes the sale or disposition of a qualified business interest, interest in a qualified investment fund or a qualified business asset with respect to which gain has been deferred. [1995 c.809 §3]
Section: Previous 316.860 316.863 316.865 316.870 316.871 316.872 316.873 316.874 316.875 316.876 316.877 316.878 316.879 316.880 316.881 NextLast modified: August 7, 2008