Or. Admin. Code § 150-314-0005

Current through Register Vol. 63, No. 12, December 1, 2024

Section 150-314-0005 - Period of Computation of Taxable Income

(1) General Rule: If the taxable year of an individual, partnership, Corporation, S corporation, trust, REMIC, or other taxpayer for federal income tax purposes is different than the taxable year for Oregon tax purposes, the Oregon tax year shall be changed to correspond to the federal tax year. In making this change or in changing from one tax year to another under ORS 314.085, Treas. Reg. Section 1.443-1 shall be followed.

(2)

(a) Annualization of Modifications and Deductions: Where annualization is required for items of income and deductions under federal law, the modifications required by the provisions of ORS Chapters 314, 316 and 317 shall be annualized in the manner provided under Treas. Reg. Section 1.443-1. Where annualization is required, an individual must itemize deductions. The Oregon standard deduction is not available for such individuals.

(b) Computation of Personal Exemption Credit: Where a change in the taxable year results in the need to file a short-year return, personal exemption credits for individuals shall be prorated based on the number of months in the short year. The credit shall equal the dollar amount allowed pursuant to ORS 316.085 multiplied by the number of months in the short year divided by twelve.

(c) Computation of Oregon Tax Credits. Where a change in the taxable year results in the need to file a short-year return, and the taxpayer is entitled to an Oregon tax credit, the credit shall be allowed on each short-year return. The taxpayer shall not be required to annualize tax credits unless the credits are based on income. The taxpayer shall not be required to prorate tax credits unless required by the provisions of ORS 316.117 for nonresidents and part-year residents. A partner in a partnership or a shareholder in an S corporation is entitled to their pro rata share of any Oregon tax credit claimed on a short-year return filed by the partnership or the S corporation.

Or. Admin. Code § 150-314-0005

RD 11-1988, f. 12-19-88, cert. ef. 12-31-88; Renumbered from 150-314.085(2), REV 29-2016, f. 8-12-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 314.085