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