Instructions For Form 20 - Oregon Corporation Excise Tax

disclosure to a donor to acknowledge this. The Attor-

§ An intangible asset is owned by one corporation or

business (the owner), and used by another (the user)

ney General will publish online and otherwise make

for a royalty or other fee;

publicly available information identifying the chari-

§ Both the owner and the user are “owned by the same

table organizations receiving a disqualification order.

interests,” as defined in Treas. Reg.§1.469-4T, para-

If you claimed a federal deduction, an addition must

graph (j);

be made on your Oregon return for donations to such

§ The owner and the user aren’t included in the same

charitable organizations.

Oregon tax return; and

• Child Care Office contributions. The deduction

§ The separation of ownership of the intangible asset

claimed on the federal return must be added back to

from the user of the intangible asset results in either:

federal taxable income on the Oregon return if the

evasion of tax or a computation of Oregon taxable

Oregon credit’s claimed. (ORS 315.213)

income that isn’t clearly reflective of Oregon busi-

• Claim of right income repayment adjustment when

ness income.

credit’s claimed. The deduction under IRC §1341 on

If the owner also files an Oregon return, the owner

the federal return must be added back to federal tax-

of the intangible asset must report the corresponding

able income on the Oregon return if the Oregon cred-

royalty or other income from such use from federal

it’s claimed. (ORS 317.388)

taxable income as an offset to Oregon taxable income.

• Deferred gain recognized from out-of-state dispo-

The offset should be shown as a negative “Other addi-

sition of property acquired in an IRC §1031 or 1033

tion” on Schedule ASC-CORP. (ORS 314.295) (OAR

exchange. See ORS 317.327 regarding the computation

150-314.295)

of the addition if gain or loss is recognized for federal

• Inventory costs. The costs allocable to inventory are

tax purposes but not taken into account in the compu-

the same as those included in IRC §263A. Differences

tation of Oregon taxable income.

in depreciation and depletion allocable to inventory

• Dependent care credits. The business expense

result in a modification. [ORS 314.287(3)]

deducted for providing dependent care assistance,

• IRC §139A federal subsidies for prescription drug

information, or referral services must be reduced by

plans. For federal purposes, taxpayers can exclude

the amount of dependent care credit claimed. [ORS

from taxable income certain federal subsidies for

315.204(7)]

prescription drug plans per IRC §139A. However, for

• Depletion (percentage in excess of cost). Percentage

Oregon purposes, this federally excluded income is an

addition on the Oregon return. (ORS 317.401)

depletion is allowed only on metal mines. All other

• IRC §631(a) treatment of timber isn’t recognized by

assets are limited to cost of depletion. (ORS 317.374)

Oregon. Both beginning and ending inventories must

• Depreciation differences. If your Oregon deprecia-

be adjusted for IRC §631(a) gain. For Oregon purposes,

tion isn’t the same as your federal depreciation, the

there is no taxable event until actual sale. (ORS 317.362)

difference is a required modification to your Oregon

• Listed foreign jurisdictions—income. Taxable income

return. (ORS 317.301) Use the Depreciation Schedule for

of any unitary corporation that’s incorporated in a

Individuals, Partnerships, Corporations, and Fiduciaries,

listed foreign jurisdiction and isn’t otherwise required

150-101-025 to determine the Oregon modification.

to file a consolidated federal return (subject corpora-

• Film production development contributions. Add

tion) shall be included in Oregon income as an “Other

back the amount of contribution for which a tax credit

addition.” See ORS 317.715 for the listed foreign juris-

certification is made that’s allowed as a deduction for

dictions. Use the subject corporation’s net income as

federal tax purposes. (ORS 315.514)

reported on line 18, Schedule C of federal Form 5471.

• Gain or loss on the disposition of depreciable prop-

Report each subject corporation’s income or loss as a

erty. Add the difference in gain or loss on sale of busi-

separate amount on Schedule ASC-CORP; don’t com-

ness assets when your Oregon basis is less than your

bine amounts of multiple corporations.

federal basis. (ORS 317.356)

If a subject corporation’s income has been excluded

• Income from sources outside the United States. Add

from your federal consolidated taxable income as

income from sources outside the United States, as

carried to your Oregon return, it’s a positive “Other

defined in IRC §862, not included in federal taxable

addition” to arrive at Oregon taxable income. For more

income under IRC §861 to §864. (ORS 317.625)

information, see ORS 317.715 and the corresponding

• Individual development accounts credit. Donations

administrative rules.

deducted on the federal return must be added back to

• Listed foreign jurisdictions —loss. Taxable loss of

Oregon income if the credit’s claimed. [ORS 315.271(2)]

any unitary corporation that’s incorporated in a listed

• Intercompany transactions involving intangible

foreign jurisdiction and isn’t otherwise required to

assets. The user of the intangible asset must add the

file a consolidated federal return (subject corpora-

royalty or other expense for such use to federal tax-

tion) shall be included in Oregon income as a negative

able income as an “other addition” on the Oregon tax

“Other addition.” See ORS 317.715 for the listed foreign

return if:

jurisdictions. Use the subject corporation’s net loss as

150-102-020-1 (Rev. 10-14)

Form 20 Instructions

Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 11

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