ORS 314.763
Taxation of shareholder’s income

  • computation
  • character of income, gain, loss or deduction

(1)

The shareholder’s pro rata share of the income of an S corporation is subject to tax under ORS chapter 316. In determining the tax imposed under ORS chapter 316 of a shareholder for the shareholder’s taxable year in which the taxable year of the S corporation ends (or for the final taxable year of a shareholder who dies, or of a trust or estate that terminates, before the end of the corporation’s taxable year), there shall be taken into account the shareholder’s pro rata share of the corporation’s separately stated items of income, loss or deduction and nonseparately computed income or loss, as determined under or for purposes of section 1366 of the Internal Revenue Code (including but not limited to section 1366(d) and (e) of the Internal Revenue Code), with the modifications, additions and subtractions provided under this chapter and ORS chapter 316.

(2)

Each item of shareholder income, gain, loss or deduction has the same character for a shareholder under this chapter and ORS chapter 316 as it has for federal income tax purposes. If an item is not characterized for federal income tax purposes, it has the same character for a shareholder as if realized directly from the source from which realized by the S corporation or incurred in the same manner as incurred by the S corporation.

(3)

In any case where it is necessary to determine the gross income of a shareholder for purposes of ORS chapter 316, such gross income shall include the shareholder’s pro rata share of the gross income of the S corporation.

(4)

If any tax is imposed under ORS 314.766 (Tax on built-in gain) for any taxable year on an S corporation, for purposes of subsection (1) of this section, the amount of each recognized built-in gain for such taxable year shall be reduced by its proportionate share of such tax.

(5)

If any tax is imposed under ORS 314.767 (Tax on excess net passive income) on an S corporation, for purposes of subsection (1) of this section, each item of passive investment income shall be reduced by an amount which bears the same ratio to the amount of such tax as the amount of such item bears to the total passive investment income for the taxable year. [Formerly 314.734]

Source: Section 314.763 — Taxation of shareholder’s income; computation; character of income, gain, loss or deduction, https://www.­oregonlegislature.­gov/bills_laws/ors/ors314.­html.

Notes of Decisions

Income from sale of intangible property used in trade or business that is located in Oregon is source of Oregon derived income for nonresident individual. Crystal Communications, Inc. v. Dept. of Revenue, 19 OTR 524 (2008), aff’d 353 Or 300, 297 P3d 1256 (2013)

314.011
Definitions 314.015
Soccer referees considered independent contractors 314.021
Application of chapter 314.023
Application to partners in domestic partnership and to surviving partners 314.029
Application of Deficit Reduction Act of 1984 (P.L. 98-369) and Simplification of Imputed Interest Rules of 1985 (P.L. 99-121) to personal income tax 314.031
Application of Deficit Reduction Act of 1984 (P.L. 98-369) and Simplification of Imputed Interest Rules of 1985 (P.L. 99-121) to corporate excise and income tax 314.033
Application of federal Tax Reform Act of 1986 (P.L. 99-514) 314.035
Application of Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203), Family Support Act of 1988 (P.L. 100-485) and Technical and Miscellaneous Revenue Act of 1988 (P.L. 100-647) 314.037
Application of P.L. 101-140, Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239) and Omnibus Budget Reconciliation Act of 1991 (P.L. 101-508) 314.039
Application of P.L. 102-2, Comprehensive National Energy Policy Act of 1992 (P.L. 102-486), Unemployment Compensation Amendments of 1992 (P.L. 102-318), Tax Extension Act of 1991 (P.L. 102-227) and Emergency Unemployment Compensation Act of 1991 (P.L. 102-164) 314.041
Application of Revenue Reconciliation Act of 1993 (P.L. 103-66), the Uruguay Round Agreements Act (P.L. 103-465) and P.L. 104-7 314.043
Application of ICC Termination Act of 1995 (P.L. 104-88), P.L. 104-117, Omnibus Consolidated Rescissions and Appropriations Act of 1996 (P.L. 104-134), Small Business Job Protection Act of 1996 (P.L. 104-188), Health Insurance Portability and Accountability Act of 1996 (P.L. 104-191) and Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) 314.045
Application of Taxpayer Relief Act of 1997 (P.L. 105-34), Taxpayer Browsing Protection Act (P.L. 105-35), Balanced Budget Act of 1997 (P.L. 105-33), Internal Revenue Service Restructuring and Reform Act of 1998 (P.L. 105-206), Transportation Equity Act for the 21st Century (P.L. 105-178) and Tax and Trade Relief Extension Act of 1998 (P.L. 105-277) 314.047
Application of Tax Relief Extension Act of 1999 (P.L. 106-170) and FSC Repeal and Extraterritorial Income Exclusion Act of 2000 (P.L. 106-519) 314.049
Application of Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16) and Job Creation and Worker Assistance Act of 2002 (P.L. 107-147) 314.051
Application of Veterans Benefit Act of 2002 (P.L. 107-330), Jobs and Growth Tax Relief Reconciliation Act of 2003 (P.L. 108-27), Military Family Tax Relief Act of 2003 (P.L. 108-121), Working Families Tax Relief Act of 2004 (P.L. 108-311) and American Jobs Creation Act of 2004 (P.L. 108-357) 314.053
Application of Deficit Reduction Act of 2005 (P.L. 109-171), Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222) and Pension Protection Act of 2006 (P.L. 109-280) 314.055
Application of Energy Independence and Security Act of 2007 (P.L. 110-140), Mortgage Forgiveness Debt Relief Act of 2007 (P.L. 110-142), Tax Increase Prevention Act of 2007 (P.L. 110-166) and Tax Technical Corrections Act of 2007 (P.L. 110-172) 314.057
Application of Economic Stimulus Act of 2008 (P.L. 110-185), Heroes Earnings Assistance and Relief Tax Act of 2008 (P.L. 110-245), Food, Conservation, and Energy Act of 2008 (P.L. 110-246), Housing and Economic Recovery Act of 2008 (P.L. 110-289), Emergency Economic Stabilization Act of 2008, Energy Improvement and Extension Act of 2008, Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (P.L. 110-343) and Fostering Connections to Success and Increasing Adoptions Act of 2008 (P.L. 110-351) 314.059
Application of American Recovery and Reinvestment Act of 2009 (P.L. 111-5) 314.061
Application of Consumer Assistance to Recycle and Save Act of 2009 (P.L. 111-32) and Worker, Homeownership, and Business Assistance Act of 2009 (P.L. 111-92) 314.063
Application of Federal Aviation Administration Air Transportation Modernization and Safety Improvement Act (P.L. 111-226), Patient Protection and Affordable Care Act (P.L. 111-148), Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (P.L. 111-192), Health Care and Education Reconciliation Act of 2010 (P.L. 111-152) and Homebuyer Assistance and Improvement Act of 2010 (P.L. 111-198) 314.075
Evading requirements of law prohibited 314.078
Determination of tax credit amounts 314.080
Venue on failure to comply with law 314.085
Taxable year 314.091
Abeyance of tax during periods of active duty military service 314.105
Definitions for ORS 314.105 to 314.135 314.115
Adjustment to correct effect of certain errors 314.125
When adjustment may be made 314.135
Computation 314.140
Adjustment of returns of related taxpayers after reallocation of income or deduction on federal return 314.255
Collection of taxes due after revocation of certification of pollution control facility 314.256
Lobbying expenditures 314.258
Withholding in certain conveyances of real estate 314.260
Taxation of real estate mortgage investment conduits 314.276
Method of accounting 314.280
Allocation of income of financial institution or public utility from business within and without state 314.287
Costs allocable to inventory 314.295
Apportionment or allocation where two or more organizations, trades or businesses are owned or controlled by the same interests 314.297
Election for alternative determination of farm income 314.300
Passive activity loss 314.302
Interest on deferred tax liabilities with respect to installment obligations 314.306
Income from discharge of indebtedness 314.307
Definitions 314.308
Reportable transactions 314.310
Liability of transferee of taxpayer for taxes imposed on taxpayer 314.330
Lien if grantor or other person determined to be owner of trust 314.355
Returns when tax year changed 314.360
Information returns 314.362
Filing return on magnetic media or other machine-readable form 314.364
Authority of department to require filing of returns by electronic means 314.370
Department requiring return or supplementary return 314.380
Furnishing copy of federal or other state return or report 314.385
Form of returns 314.395
Time for payment of tax 314.397
Manner of payment 314.400
Penalty for failure to file report or return or to pay tax when due 314.401
De minimis tax payment not required 314.402
Understatement of net tax 314.403
Listed transaction understatement 314.404
Penalty for failure to report reportable transaction 314.406
Penalty for promotion of abusive tax shelter 314.407
Assessment of taxes owing but not submitted with return 314.410
Time limit for notice of deficiency 314.412
Issuing of notice of deficiency attributable to involuntary conversion 314.415
Refunds 314.417
Unpaid tax or withholding lien at time of assessment 314.419
Foreclosure of lien 314.421
When lien valid 314.423
Status of lien 314.425
Examining books, records or persons 314.430
Warrant for collection of taxes 314.440
Tax as debt 314.466
Audits, deficiencies, assessments, refunds and appeals governed by ORS chapter 305 314.469
Treatment of moneys collected under ORS 314.406 314.505
Estimate of tax liability by corporations 314.515
Installment schedule for payment of estimated tax 314.518
Estimated tax payments by electronic funds transfer 314.520
State agency authority over certain electronic funds transfer payments 314.525
Underpayment of estimated tax 314.605
Short title 314.606
Status of ORS 314.605 to 314.675 when in conflict with Multistate Tax Compact 314.610
Definitions for ORS 314.605 to 314.675 314.615
When allocation and apportionment of net income from business activity required 314.620
When taxpayer is considered taxable in another state 314.625
Certain nonapportionable income to be allocated 314.630
Allocation to this state of net rents and royalties 314.635
Allocation to this state of capital gains and losses 314.640
Allocation to this state of interest and dividends 314.642
Allocation to this state of lottery prizes 314.645
Allocation to this state of patent and copyright royalties 314.647
Policy 314.650
Apportionment of income 314.655
Determination of property factor 314.660
Determination of payroll factor 314.665
Determination of sales factor 314.666
Market for sales in this state 314.667
Additional methods to determine extent of business activity in this state 314.668
Definitions 314.669
Legislative findings 314.671
Qualifying investment contract 314.673
Rules 314.674
Apportionment of broadcasting sales 314.675
Apportionment of net loss 314.695
Application of ORS 314.280 and 314.605 to 314.675 314.698
Treatment of global intangible low-taxed income 314.712
Partnerships not subject to income tax 314.714
Character of partnership income 314.716
Basis of partner’s interest 314.718
Treatment of contributions to partnership 314.720
Treatment of distributions from partnership 314.722
Publicly traded partnerships taxed as corporations 314.724
Information return 314.725
Privilege tax applicable to partnerships 314.726
Application of ORS 314.724 314.727
Disclosure of partnership items to partner 314.731
Definitions 314.733
Requirement to report adjustments from partnership-level audit or administrative adjustment request 314.735
Time limit for notice of deficiency 314.737
Time limit for claim for refund or credit 314.739
Obligation or right of partner to report changes in taxable income or tax liability 314.761
“C corporation” and “S corporation” defined for this chapter and ORS chapters 316, 317 and 318 314.762
Taxation of S corporation 314.763
Taxation of shareholder’s income 314.764
Treatment of distributions by S corporation 314.765
Employee fringe benefits 314.766
Tax on built-in gain 314.767
Tax on excess net passive income 314.768
S corporation or shareholder elections 314.769
Application of sections 1377 and 1379 of Internal Revenue Code 314.770
Disclosure of S corporation items to shareholder 314.771
Recapture of LIFO benefits 314.772
Business tax credits 314.775
Definitions for ORS 314.775 to 314.784 314.778
Composite returns of pass-through entities 314.781
Withholding 314.784
Circumstances when pass-through entity withholding is not required 314.805
Department to administer and enforce laws 314.810
Administering oaths and taking acknowledgments 314.815
Rules and regulations 314.835
Divulging particulars of returns and reports prohibited 314.840
Disclosure of information 314.843
Reporting of information to consumer reporting agency 314.845
Certificate of department as evidence 314.850
Statistics 314.855
Rewards for information 314.865
Use of certain information for private benefit prohibited 314.870
Time for performing certain acts postponed by reason of service in a combat zone 314.991
Penalties
Green check means up to date. Up to date

Current through early 2024

§ 314.763’s source at oregon​.gov