OAR 150-316-0171
Gross Income of Nonresidents; Other Income and Sale of Property

(1)

Income from intangible personal property.

(a)

Business situs. Intangible personal property, including money or credits, of a nonresident has a situs for taxation in Oregon when used in the conduct of the taxpayer’s business, trade, or profession in Oregon. Income from the use of such property, including dividends, interest, royalties, and other income from money or credits, constitutes a part of the income from a business, trade, or profession carried on in Oregon when such property is acquired or used in the course of such business, trade, or profession as a capital or current asset and is held in that capacity at the time the income arises.

(b)

If a nonresident pledges stocks, bonds, or other intangible personal property in Oregon as security for the payment of indebtedness, taxes, etc., incurred in connection with a business in this state, the property has a business situs here. Thus, if a nonresident maintains a branch office here and a bank account on which the agent in charge of the branch office may draw for the payment of expenses in connection with the activities in this state, the bank account has a business situs here. If intangible personal property of a nonresident has acquired a business situs here, the entire income from the property, including gains from the sales of the property, regardless of where the sale is consummated, is income from sources within this state and is taxable to the nonresident.

(2)

Sales of property.

(a)

Tangible property. The gain from any sale, exchange, or other disposition by a nonresident of real or tangible personal property located in Oregon is taxable, even though it is not connected with a business carried on in this state. The loss from such a transaction is deductible if it is a business loss or a transaction entered into for profit. The gain or loss from the sale, exchange, or other disposition of real property or tangible personal property located in Oregon is determined in the same manner and recognized to the same extent as the gain or loss from a similar transaction by a resident.

(b)

Intangible property. The gain from the sale, exchange, or other disposition of intangible personal property, including stocks, bonds, and other securities is not taxable unless the intangible personal property has acquired a business situs in Oregon. See section (1) of this rule. Likewise, losses from the sale, exchange, or other disposition of such property are not deductible, unless they are losses incurred in a business carried on within Oregon by the nonresident taxpayer.

(c)

S corporation stock. In general, a nonresident’s gain or loss from the sale, exchange, or disposition of S corporation stock is not attributable to a business carried on in this state and is not Oregon source income. The gain or loss from the S corporation stock may not be used in the determination of Oregon taxable income unless the stock has acquired a business situs in this state. See section (1) of this rule.

(d)

General Partnership Interests. A nonresident’s gain or loss from the sale, exchange, or disposition of a general partnership interest in an Oregon partnership is attributable to a business carried on in Oregon and is Oregon source income. The gain or loss is allocated as provided in ORS 314.635 (Allocation to this state of capital gains and losses).

(e)

Limited Partnership Interests. In general, a nonresident’s gain or loss from the sale, exchange, or disposition of a limited partnership interest is not attributable to a business carried on in Oregon and is not Oregon source income. The gain or loss from the sale of the interest will not be used in the determination of Oregon taxable income unless the limited partnership interest has acquired a business situs in this state (see section (1) of this rule.).

(f)

Limited Liability Company Interests. The taxation of a nonresident’s gain or loss from the sale, exchange, or disposition of an interest in a limited liability company (LLC) operating in Oregon is Oregon source income and is taxed in the same manner as:

(A)

The sale of a general partnership interest under subsection (2)(d) of this rule if the selling member is a member-manager of the LLC; or

(B)

The sale of a limited partnership interest under subsection (2)(e) of this rule if the selling member is not a member-manager of the LLC.

(C)

For purposes of this rule, a person is a “member-manager” of an LLC if that member has the right to participate in the management and conduct of the LLC’s business. For an LLC that is designated as a member-managed LLC in its articles of organization, all members of the LLC will be member-managers. For an LLC that is designated as a manager-managed LLC in its articles of organization, only those persons who are both members of the LLC and are designated as a manager in the LLC’s operating agreement (or elected as managers by the LLC members pursuant to the operating agreement) will be member-managers.

(g)

Limited Liability Partnership Interests. A nonresident’s gain or loss from the sale, exchange, or disposition of an interest in a limited liability partnership is taxed in the same manner as if it were a general partnership interest under subsection (2)(d) of this rule.

(3)

Interest income received on contract sale of property. Interest income received by a nonresident from the sale of Oregon property is not Oregon source income. The source of the income is not from the sale of the property but rather from the use of the money permitted the buyer in an installment contract.

(4)

Distribution of a trust’s income accumulation to a nonresident. See ORS 316.737 (Amount specially taxed under federal law to be included in computation of state taxable income) and OAR 150-316-0575 (Amount Specially Taxed Under Federal Law to Be Included in Computation of State Taxable Income: Accumulation Distributions) for the treatment of trust income accumulation distributions.

(5)

Net operating losses. See OAR 150-316-0005 and 150-316-0035 (Oregon Net Operating Losses — Treatment After 1984) for the treatment of net operating losses.

(6)

Passive activity losses. See OAR 150-314-0110 (Allocation of Oregon Modifications to Passive Activity Losses) for the treatment of passive activity losses.

Source: Rule 150-316-0171 — Gross Income of Nonresidents; Other Income and Sale of Property, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-316-0171.

150–316–0006
Application of Capital Losses and Capital Loss Carryforwards 150–316–0007
Policy — Application of Various Provisions of the Federal Internal Revenue Code 150–316–0009
Policy — Application of Various Provisions of Tax Law to Domestic Partners 150–316–0015
Adoption of Federal Law 150–316–0020
Tax Reform Act of 1984 Adjustments 150–316–0025
Definition: “Resident” 150–316–0027
Status of Individuals in a Foreign Country 150–316–0035
Oregon Net Operating Losses — Treatment After 1984 150–316–0040
Administrative and Judicial Interpretations 150–316–0043
Qualified Business Income Reduced Tax Rate (QBIRTR) 150–316–0045
Taxable Income of Nonresidents and Part-year Residents 150–316–0050
Farm Capital Gain 150–316–0055
Transitional Provision to Prevent Doubling Income or Deductions 150–316–0060
Taxable Income of Resident 150–316–0065
Social Security and Railroad Retirement Benefits Eligible for Subtraction 150–316–0080
Credit for Income Taxes Paid to Another State 150–316–0082
Credit for Taxes Paid to Another State When Paid by a Pass-Through Entity 150–316–0084
Credit for Income Taxes Paid to Another State — Computation 150–316–0086
Credit for Income Taxes Paid to Other States — Proof Required and Procedure for Obtaining the Credit 150–316–0088
Addition of Taxes Paid to Another State Claimed as an Itemized Deduction 150–316–0090
Credit for Duplicative State Taxation Relating to Different Years 150–316–0115
Disabled Child Exemption Credit 150–316–0120
Credit for Political Contributions 150–316–0125
Credit for the Gain on the Sale of a Residence Taxed by Another State 150–316–0130
Credit for Installation of Alternative Energy Devices 150–316–0135
Proration of Income and Deductions for Nonresidents and Part-Year Residents 150–316–0145
Proration for Pass-through Entity Income of Part Year Oregon Residents 150–316–0150
Separate or Joint Federal Returns for Spouses in a Marriage 150–316–0155
Nonresident Partners: Guaranteed Payments 150–316–0157
Nonresident Partners: Other Methods of Allocation and Apportionment 150–316–0165
Gross Income of Nonresidents 150–316–0167
Gross Income of Nonresidents 150–316–0169
Gross Income of Nonresidents 150–316–0171
Gross Income of Nonresidents 150–316–0173
Gross Income of Nonresidents 150–316–0175
Gross Income of Nonresidents 150–316–0179
Student Loan Interest Deduction — for Part-Year and Nonresidents 150–316–0181
Moving Expense Deduction — for Part-year and Nonresidents 150–316–0183
Gross Income of Nonresidents 150–316–0185
Gross Income of Nonresidents: Waterway Workers 150–316–0195
Alimony Deduction — for Part-Year and Nonresidents 150–316–0197
Nonresident Deduction for Contributions to IRA, Keogh, or Qualified Medical Savings Accounts 150–316–0205
Credit for Taxes Paid to State of Residence 150–316–0225
Retirement Income Credit 150–316–0230
Subtraction for Previously Taxed Contributions 150–316–0234
“Withholding Statement” and “Exemption Certificate” 150–316–0235
Withholding: Basis of Amount Withheld 150–316–0237
Employees Exempt from Withholding 150–316–0239
Withholding on Fringe Benefits 150–316–0241
Independent Contractor Definition 150–316–0243
Personal Liability of Responsible Officers, Members, or Employees for Taxes Withheld 150–316–0250
Bonding Requirements for Delinquent Withholding Employers 150–316–0255
Withholding by Employers 150–316–0257
Employer’s Election of Method of Computing Withholding 150–316–0265
Withholding Payments: Cash Basis 150–316–0267
Additional Time to File Reports 150–316–0275
Treatment of Payroll Based Program Overpayments 150–316–0282
Exemptions for Military Personnel 150–316–0284
Penalty 150–316–0290
Procedure for Correcting the Filing of Withholding Certificates 150–316–0295
Credit for Tax Withheld 150–316–0297
Where Taxpayer Reports on Fiscal Year Basis 150–316–0305
Withholding Income Taxes on IRAs, Annuities, and Compensation Plans 150–316–0307
Withholding Income Taxes on IRAs, Annuities, and Compensation Plans 150–316–0315
Alternative Withholding Payment Method for Employers to Avoid Undue Burden 150–316–0320
Voluntary Withholding for Retired Members of the Uniformed Services 150–316–0325
Voluntary Withholding for Civil Service Annuitants 150–316–0330
Semiannual Reports and Payments 150–316–0332
Withholding: Payment Due Dates 150–316–0334
Withholding Tax Payment Requirements for Agricultural Employers 150–316–0336
Employee’s Rights 150–316–0345
Requirement to use Electronic Funds Transfer 150–316–0347
Electronic Funds Transfer. Payroll taxes and corporation estimated income and excise taxes not combined in determining mandate. Payments to be included. 150–316–0355
Withholding: Payment and Reports 150–316–0357
Waiver of Termination Reports 150–316–0359
Withholding: Annual Report by Employer 150–316–0361
Combined Reports and Statewide Transit Tax Reports: Agricultural Employers 150–316–0370
Liability for Unpaid Withholdings 150–316–0372
Officer Liability: Joint Determination of Liability Conference 150–316–0380
Withholding Penalties 150–316–0385
Nonresident Alternate Filing 150–316–0390
Deductions Allowed on Either the Inheritance Tax Return or the Fiduciary Income Tax Return 150–316–0395
Tax Treatment of Unincorporated Organization 150–316–0400
Resident and Nonresident Estates and Trusts 150–316–0402
Oregon Qualified Trust Tax Return 150–316–0410
Fiduciary Adjustment 150–316–0415
Accumulation Distribution Credit for Oregon Taxes Paid by Trust During Income Accumulation Years 150–316–0420
Taxable Income of Nonresident Estate or Trust 150–316–0425
Oregon Multiple Funeral Trust Tax Return 150–316–0427
Persons Required to Make Returns 150–316–0435
Petitioning Department to Equally Split Joint Liability 150–316–0440
Innocent Spouse, Separation of Liability, and Equitable Relief Provisions 150–316–0445
Liability of Fiduciaries 150–316–0450
Decedent’s Estate: Request for a Final Tax Determination 150–316–0452
Decedents’ Estate: Application for Discharge from Personal Liability for Tax on Decedent’s Income 150–316–0465
Estimated Tax 150–316–0470
Allocation of Joint Estimated Tax Payments 150–316–0475
Estimated Tax: Farmer’s and Fisher’s 150–316–0480
Estimated Tax: Application of Prior Year Overpayment (Refund) 150–316–0485
Tax Used to Compute Underpayment of Estimated Tax 150–316–0487
Estimated Tax: Underpayment Interest Not Imposed if There is a Casualty, Disaster or Other Unusual Circumstances 150–316–0489
Estimated Tax: Underpayment Interest Not Imposed If There Is Reasonable Cause 150–316–0491
Estimated Tax: Partnership and S Corporation Income of Part-year Residents and Nonresidents 150–316–0493
Required Installments for Estimated Tax 150–316–0495
Estimated Tax: Joint Return to Single or Separate Return 150–316–0497
Estimated Tax: Single or Separate Returns to Joint Return 150–316–0505
Oregon Lottery Winnings and Losses 150–316–0507
Modification of Federal Taxable Income: Interest and Dividends 150–316–0509
U.S. Government Obligations 150–316–0511
Addition for Original Issue Discount (OID) 150–316–0513
Modification of Federal Taxable Income: Adding Interest or Dividends of the United States Exempted by Federal Income Tax Law 150–316–0515
Modification of Federal Taxable Income: Adding Federal Estate Tax Attributable to Income in Respect of a Decedent Not Taxable by Oregon 150–316–0519
Gain or Loss Upon the Sale of State and Municipal Bonds of Other States (Foreign States) 150–316–0525
U.S. Government Interest in Retirement Accounts 150–316–0530
Pool of Assets that Qualify to Pay State Exempt-Interest Dividends 150–316–0535
Federal Tax Deduction: Accrual Method of Accounting Required 150–316–0537
Adjustment of Federal Tax Liability 150–316–0545
Election to Include Child’s Unearned Income — Addition Required 150–316–0550
Special Oregon Medical Subtraction 150–316–0555
Modification of Federal Taxable Income: Itemized vs. Standard Deduction 150–316–0557
Modification of Federal Taxable Income: Oregon Income Tax Claimed as an Itemized Deduction 150–316–0559
Modification of Federal Taxable Income: Previously Taxed Contributions to Pension or Annuity 150–316–0565
Basis of Depreciable Assets Moved into Oregon 150–316–0567
Property Subject to Accelerated Cost Recovery System 150–316–0569
Adjustment to Income for Basis Differences 150–316–0575
Amount Specially Taxed Under Federal Law to Be Included in Computation of State Taxable Income: Accumulation Distributions 150–316–0580
Definition for Severely Disabled Exemption 150–316–0585
Exemption for Blind and Severely Disabled 150–316–0590
Substantiation for Permanently Severely Disabled 150–316–0595
Exempt Income of Native Americans 150–316–0600
Oregon Investment Advantage Apportionable Income Exemption 150–316–0605
Military Pay Subtraction 150–316–0607
First-time Home Buyer Savings Account 150–316–0610
Road Construction Worker’s Travel Expenses 150–316–0615
Substantiation Required for Construction Worker and Loggers Expenses 150–316–0625
(Miscellaneous) Valuation of Forest Land or “Farm Use” Land for Oregon Inheritance Tax Purposes 150–316–0630
Scholarship Awards used for Housing Expenses 150–316–0635
Subtraction for Land Contributed to Educational Institutions 150–316–0640
Subtraction for Qualified Investment of Severance Pay 150–316–0650
Waiver of Frivolous Return Penalty Imposed Under ORS 316.992 150–316–0652
Frivolous Return Penalty
Last Updated

Jun. 8, 2021

Rule 150-316-0171’s source at or​.us