Subtraction for Previously Taxed Contributions
(1)Intentionally left blank —Ed.
(a)For tax years beginning on or after January 1, 1991, Oregon will allow resident taxpayers a subtraction for distributions from an individual retirement account, Keogh plan or Simplified Employee Pension plan for the contributions to the plan that have already been taxed by another state. The subtraction is allowed only if all of the following conditions are met:
(A)The distributions consist of contributions made during a period in which the taxpayer was a nonresident of Oregon;
(B)The distributions consist of contributions made during a period in which the taxpayer was a resident of a state that imposes an income tax;
(C)The distributions consist of contributions for which no deduction, exclusion or exemption for the contributions was allowed or allowable in the state in which the taxpayer was a resident prior to becoming an Oregon resident; and
(D)No deduction, exclusion, subtraction or other tax benefit has been allowed for the distributions by another state before the taxpayer becomes a resident of Oregon.
(b)If any portion of the distributions received by a resident of Oregon qualify for the subtraction, those distributions first received by the taxpayer are allowed to be subtracted. The subtraction continues until the distributions that qualify for the subtraction are recovered. Any distributions received after that are fully taxable to the Oregon resident.
(c)The following contributions do not qualify for the subtraction:
(A)Contributions made during a period when the taxpayer was a nonresident required to file an Oregon return to the extent that a deduction or exclusion was allowable for those contributions; or
(B)Contributions made during a period when the taxpayer was a resident of a state that does not impose an income tax; or
(C)Contributions for which the taxpayer was allowed a credit for taxes paid to another state.
(2)If the taxpayer has already received distributions from an IRA, Keogh or SEP that is a recovery of contributions that meet the provisions of Section (1), then the taxpayer will be allowed a subtraction in 1991 for those contributions. Taxpayer will then be allowed a subtraction each year until all qualifying contributions are recovered. From that point on, no subtraction is allowed on the Oregon return for recovery of contributions.
Rule 150-316-0230 — Subtraction for Previously Taxed Contributions,