Gross Receipts Related to Deferred Gain or Loss
(1)In general. In all cases where gain or loss is realized for accounting purposes in the year of the associated transaction, but not fully recognized for tax purposes in that year, the total gross receipts from the transaction must be included in the sales factor for the year of the transaction if the associated gain or loss is considered apportionable income or loss under ORS 314.610 (Definitions for ORS 314.605 to 314.675), except where:
(a)The gross receipts are excluded from “sales” under ORS 314.665 (Determination of sales factor)(6)(a) and (6)(c); or
(b)The net gain rather than gross receipts is included in the sales factor under ORS 314.665 (Determination of sales factor)(6)(b). Also see OAR 150-314-0355 (Special Rules: Installment Sales) regarding the apportionment of installment sale income and OAR 150-314-0385 (Apportionment Formula) regarding apportionment of deferred gain subject to tax in a year after the year of disposition.
(2)Gross receipts from deferred gain on exchanges of property. In regard to exchanges of property qualifying for the deferral of tax on the gain or loss under section ORS 317.327 (Modification of taxable income when deferred gain is recognized as result of out-of-state disposition of property) and sections 1031 or 1033 of the Internal Revenue Code, “gross receipts” means the fair market value of the property acquired on the date of exchange.
Rule 150-314-0437 — Gross Receipts Related to Deferred Gain or Loss,