Form 65 - Instructions For Tax Form Installment printable pdf download

Form 65 Instructions

Which partnerships must file an

booklets. A partnership is not subject to tax, but each

partner’s distributive share of net income (or loss) and

Oregon partnership return?

separately stated items must be reported on that partner’s

• Every partnership having income from sources in Oregon.

individual return.

• Every partnership having one or more Oregon resident

Partners report their share of Oregon modifications on

partners.

Forms 40, 40N, or 40P. Generally, increases to income go

on the “Other additions” line of the Oregon individual

What must be attached to the

return. Generally, decreases to income go on the “Other

subtractions” line of the Oregon individual return. Label the

Oregon partnership return?

line “Oregon partnership modifications.” Separately stated

Attach the information in the following order:

items go on the appropriate line of the Oregon individual

return.

• A list of partners, if more than 10 partners at any time

during the year.

Nonresident partners can choose to file an individual

• An apportionment schedule, if you answered yes to ques-

nonresident return or join together to file a multiple non-

resident tax return. Call (503) 945-8462 to order instructions

tion 5 on Form 65.

for filing multiple nonresident returns.

• An Oregon Depreciation Schedule (form 150-101-025), if

Oregon depreciation is different from federal depreciation.

Oregon modifications to federal

• If this is the final partnership return, a schedule showing

partnership income

to whom all assets and liabilities were distributed, and

each asset’s adjusted basis and fair market value.

Complete Schedule I to figure Oregon modifications to fed-

• A copy of federal Form 1065, U.S. Partnership Return of Income,

eral partnership income. Attach schedules if necessary to

or Form 1065-B, U.S. Return of Income for Electing Large Part-

explain and compute the modifications.

nerships. Include all pages and supporting schedules.

Generally, each partner’s share of modifications is figured by

• Federal Schedule K-1s, if the partnership has less than 11

using the profit sharing percentage shown on that partner’s

partners during the year.

federal Schedule K-1. Each partner’s share of the Oregon

modifications must be reported on the partner’s Schedule

Filing deadlines and date of

K-1 or equivalent. Show separately any Oregon modification

connection to federal law

which could have a special tax effect on a partner’s individual

return. The modifications may be added to the federal Sched-

Returns for the 1998 calendar year are due by April 15, 1999.

ule K-1s and labeled “Oregon modifications.”

Fiscal year returns are due by the 15th day of the fourth

Gain on voluntary and involuntary conversions. Part-

month after the end of the partnership’s tax year.

nerships may elect for their resident partners to defer the

Oregon is permanently tied to federal law. Most items are

gain on voluntary and involuntary conversions where prop-

treated the same way on your Oregon and federal returns.

erty voluntarily or involuntarily converted is in Oregon and

Any future federal law changes will automatically be

the property acquired is outside Oregon.

adopted by Oregon. The partnership’s tax year for Oregon

must be the same as for federal. Oregon doesn’t have a

Partnerships must make the election for all consenting resi-

dent partners. Attach a statement to Oregon Form 65 stat-

required payment for partnerships choosing an alternative

ing that the Oregon partners are electing to defer the gain.

tax year.

To defer the gain to property outside Oregon, the Oregon

Oregon recognizes the federal “check the box” regulations

partners must agree to report the gain if they later become

for unincorporated organizations. Also, Oregon treats the

nonresidents. They must also report the gain if they lose

electing large partnership the same as federal.

their federal deferral.

Partnership failure-to-file penalty

Nonresident partners must report the gain when the prop-

erty voluntarily or involuntarily converted is in Oregon and

A penalty may be assessed if a partnership doesn’t file a

the property acquired is outside Oregon. The basis of the

return or fails to provide information to the Department of

property must be adjusted for those nonresident partners.

Revenue as required by law. The penalty is $50 per month

per partner for each month the return is late or incomplete,

Depreciation differences (1981–1985 ACRS assets)

up to a maximum of five months. Each partner is person-

The 1996 law requiring a mandatory one-time adjustment

ally liable for a portion of the penalty.

to align Oregon basis with federal basis for these assets was

revised to make the adjustment elective. If you received no

Individual income tax returns

benefit from making this adjustment in 1996, you may

revoke it by amending your 1996 return. By revoking the

The Oregon individual income tax booklet lists filing

adjustment, you will need to report a depreciation differ-

requirements for partners’ individual income tax returns. See

page 2 to order full-year resident and part-year/nonresident

Page 1

Form 65 - Instructions For Tax Form Installment

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