ORS 316.124
Determination of adjusted gross income of nonresident partner

(1)

In determining the adjusted gross income of a nonresident partner of any partnership, there shall be included only that part derived from or connected with sources in this state of the partner’s distributive share of items of partnership income, gain, loss and deduction (or item thereof) entering into the federal adjusted gross income of the partner, as such part is determined under rules adopted by the Department of Revenue in accordance with the general rules in ORS 316.127 (Income of nonresident from Oregon sources).

(2)

In determining the sources of a nonresident partner’s income, no effect shall be given to a provision in the partnership agreement which:

(a)

Characterizes payments to the partner as being for services or for the use of capital, or allocated to the partner, as income or gain from sources outside this state, a greater proportion of the partner’s distributive share of partnership income or gain than the ratio of partnership income or gain from sources outside this state to partnership income or gain from all sources, except as authorized in subsection (4) of this section; or

(b)

Allocates to the partner a greater proportion of a partnership item of loss or deduction connected with sources in this state than the proportionate share of the partner, for federal income tax purposes, of partnership loss or deduction generally, except as authorized in subsection (4) of this section.

(3)

Any modification to federal taxable income described in this chapter that relates to an item of partnership income, gain, loss or deduction (or item thereof) shall be made in accordance with the partner’s distributive share, for federal income tax purposes of the item to which the modification relates, but limited to the portion of such item derived from or connected with sources in this state.

(4)

The department may, on application, authorize the use of such other methods of determining a nonresident partner’s portion of partnership items derived from or connected with sources in this state, and the modifications related thereto, as may be appropriate and equitable, on such terms and conditions as it may require.

(5)

A nonresident partner’s distributive share of items of income, gain, loss or deduction (or item thereof) shall be determined under ORS 314.714 (Character of partnership income) (2). The character of partnership items for a nonresident partner shall be determined under ORS 314.714 (Character of partnership income) (1). [1989 c.625 §32 (enacted in lieu of 316.352)]

Source: Section 316.124 — Determination of adjusted gross income of nonresident partner, https://www.­oregonlegislature.­gov/bills_laws/ors/ors316.­html.

Notes of Decisions

Guaranteed distributions to nonresident partners are subject to apportionment and taxation as part of distributive share of partnership income. Pratt & Larsen Tile v. Dept. of Rev., 13 OTR 270 (1995)

Treating guaranteed payments as partnership proceeds is not inconsistent with treating Oregon share of those proceeds as ordinary income under ORS 314.712. Reeve/Tubbs v. Dept. of Revenue, 15 OTR 148 (2000), aff’d 333 Or 190, 37 P3d 981 (2001)

Nonresident taxpayer’s federally determined distributive share of pass-through entities’ income and loss may not be aggregated prior to apportionment to Oregon. Cook v. Dept. of Rev., 23 OTR 107 (2018)

316.002
Short title 316.003
Goals 316.007
Policy 316.012
Terms have same meaning as in federal laws 316.013
Determination of federal adjusted gross income 316.018
Application of Payment-in-Kind Tax Treatment Act of 1983 316.022
General definitions 316.024
Application of federal law to determination of taxable income 316.026
Charitable contributions or activities not to be used for domicile or resident status determination 316.027
“Resident” defined 316.028
Determination of net operating loss, carryback and carryforward 316.029
Disallowance of subtraction for amounts included in calculation of net operating loss 316.032
Department to administer law 316.037
Imposition and rate of tax 316.042
Amount of tax where joint return used 316.043
Tax rates allowed for certain qualifying income 316.044
Estimates by Legislative Revenue Officer 316.045
Tax rate imposed on certain long-term capital gain from farming 316.047
Transitional provision to prevent doubling income or deductions 316.048
Taxable income of resident 316.054
Social Security benefits to be subtracted from federal taxable income 316.056
Interest or dividends on obligations of state or public bodies subtracted from federal taxable income 316.078
Tax credit for dependent care expenses necessary for employment 316.079
Credit for certain disabilities 316.082
Credit for taxes paid another state 316.085
Personal exemption credit 316.087
Credit for the elderly or permanently and totally disabled 316.090
Credit for manufactured dwelling park closure 316.099
Credit for early intervention services for child with disability 316.102
Credit for political contributions 316.109
Credit for tax by another jurisdiction on sale of residential property 316.116
Credit for alternative energy device 316.117
Proration between Oregon income and other income for nonresidents, part-year residents and trusts 316.118
Pro rata share of S corporation income of nonresident shareholder 316.119
Proration of part-year resident’s income between Oregon income and other income 316.122
Separate or joint determination of income for spouses in a marriage 316.124
Determination of adjusted gross income of nonresident partner 316.127
Income of nonresident from Oregon sources 316.130
Determination of taxable income of full-year nonresident 316.131
Credit allowed to nonresident for taxes paid to state of residence 316.147
Definitions for ORS 316.147 to 316.149 316.148
Credit for expenses in lieu of nursing home care 316.149
Evidence of eligibility for credit 316.157
Credit for retirement income 316.158
Effect upon ORS 316.157 of determination of invalidity 316.159
Subtraction for certain retirement distributions contributed to retirement plan during period of nonresidency 316.162
Definitions for ORS 316.162 to 316.221 316.164
When surety bond or letter of credit required of employer 316.167
Withholding of tax required 316.168
Employer required to file combined quarterly tax report 316.169
Circumstances in which person other than employer required to withhold tax 316.171
Application of tax and report to administration of tax laws 316.172
Department to provide deduction and withholding information and determine amount, form and manner of withholding by employers 316.177
Reliance on withholding statement or exemption certificate 316.182
Withholding statement of exemption certificate 316.187
Amount withheld is in payment of employee’s tax 316.189
Withholding of state income taxes from certain periodic payments 316.191
Withholding taxes at time and in manner other than required by federal law 316.193
Withholding of state income taxes from federal retired pay for members of uniformed services 316.194
Withholding from lottery prize payments 316.196
Withholding of state income taxes from federal retirement pay for civil service annuitant 316.197
Payment to department by employer 316.198
Payment by electronic funds transfer 316.202
Reports by employer 316.207
Liability for tax 316.209
Applicability of ORS 316.162 to 316.221 when services performed by qualified real estate broker or direct seller 316.212
Applicability of other provisions of tax law 316.213
Definitions for ORS 316.213 to 316.219 316.214
Withholding requirements for members of professional athletic teams 316.218
Annual report of compensation paid to professional athletic team members 316.219
Rules 316.220
Alternative withholding requirements for qualifying film production compensation 316.221
Disposition of withheld amounts 316.223
Alternate methods of filing, reporting and calculating liability for nonresident employer and employee in state temporarily 316.267
Application of chapter to estates and certain trusts 316.272
Computation and payment on estate or trust 316.277
Associations taxable as corporations exempt from chapter 316.279
Treatment of business trusts and business trusts income 316.282
Definitions related to trusts and estates 316.287
“Fiduciary adjustment” defined 316.292
Credit for taxes paid another state 316.298
Accumulation distribution credit 316.302
“Nonresident estate or trust” defined 316.307
Income of nonresident estate or trust 316.312
Determination of Oregon share of income 316.317
Credit to beneficiary for accumulation distribution 316.362
Persons required to make returns 316.363
Returns 316.364
Flesch Reading Ease Score form instructions 316.367
Joint return by spouses in a marriage 316.368
When joint return liability divided 316.369
Circumstances where one spouse relieved of joint return liability 316.372
Minor to file return 316.377
Individual under disability 316.382
Returns by fiduciaries 316.387
Election for final tax determination by personal representative 316.392
Notice of qualification of receiver and others 316.417
Date return considered made or advance payment made 316.457
Department may require copy of federal return 316.462
Change of election 316.472
Tax treatment of common trust fund 316.502
Distribution of revenue to General Fund 316.557
Definition of “estimated tax.” 316.559
Application of ORS 316.557 to 316.589 to estates and trusts 316.563
When declaration of estimated tax required 316.567
Joint declaration of spouses in a marriage 316.569
When declaration required of nonresident 316.573
When individual not required to file declaration 316.577
Date of filing declaration 316.579
Amount of estimated tax to be paid with declaration 316.583
Effect of payment of estimated tax or installment 316.587
Effect of underpayment of estimated tax 316.588
When interest on underpayment not imposed 316.589
Application to short tax years and tax years beginning on other than January 1 316.680
Modification of taxable income 316.681
Interest or dividends to benefit self-employed or individual retirement accounts 316.683
State exempt-interest dividends 316.685
Federal income tax deductions 316.687
Amount in excess of standard deduction for child, if child’s income included on parent’s federal return 316.690
Foreign income taxes 316.693
Subtraction for medical expenses of elderly individuals 316.695
Additional modifications of taxable income 316.697
Fiduciary adjustment 316.698
Subtraction for qualifying film production labor rebates 316.699
Subtraction for contributions to savings network account for higher education or ABLE account 316.707
Computation of depreciation of property under federal law 316.716
Differences in basis on federal and state return 316.737
Amount specially taxed under federal law to be included in computation of state taxable income 316.738
Modification of taxable income when deferred gain is recognized as result of out-of-state disposition of property 316.739
Deferral of deduction for certain amounts deductible under federal law 316.744
Cash payments for energy conservation 316.747
Contribution to charitable organization subject to disqualification order 316.749
Dividend from domestic international sales corporation 316.752
Definitions for ORS 316.752 to 316.771 316.758
Additional personal exemption credit for persons with severe disabilities 316.765
Additional personal exemption credit for spouse of person with severe disability 316.771
Proof of status for exemption credit 316.777
Income derived from sources within federally recognized Indian country exempt from tax 316.778
Small city business development exemption 316.783
Amounts received for condemnation of Indian tribal lands 316.785
Income derived from exercise of Indian fishing rights 316.787
Payments to Japanese and Aleuts under Civil Liberties Act of 1988 316.792
Military pay 316.795
Exemption for payments to tenants of manufactured dwelling parks upon termination of rental agreement 316.796
Definitions 316.797
First-time home buyer savings account 316.798
Subtraction for contributions 316.800
Limits phased out based on income applicable to subtraction or exemption 316.801
Addition for certain amounts withdrawn 316.803
Obligations of financial institution 316.806
Definitions for ORS 316.806 to 316.818 316.812
Certain traveling expenses 316.818
Proof of expenses 316.821
Federal election to deduct sales taxes 316.824
Definitions for ORS 316.824 and 316.832 316.832
Travel expenses for loggers 316.836
Qualified production activities income 316.837
Addition for federal prescription drug plan subsidies excluded for federal tax purposes 316.838
Art object donation 316.844
Special computation of gain or loss where farm use value used 316.845
Exception to ORS 316.844 316.846
Scholarship awards used for housing expenses 316.847
National service educational award 316.848
Individual development accounts 316.852
Qualified donations and sales to educational institutions 316.853
Addition for amount deducted as deemed repatriation 316.856
Severance pay 316.859
Addition for amount deducted as qualified business income from pass-through entity 316.970
Effect of chapter 493, Oregon Laws 1969 316.992
Penalty for filing incorrect return that is based on frivolous position or is intended to delay or impede administration
Green check means up to date. Up to date

Current through early 2024

§ 316.124’s source at oregon​.gov