Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 13

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Worksheet for computing dividend deduction (include
Line 11. Total other subtractions. The amount by which
an item of gross income is less under Oregon law than
a copy when filing your return).
federal law, or the amount by which an allowable deduc-
tion is greater under Oregon law than federal law, is a
1.
Dividends included in federal
1. ________
subtraction on your Oregon return.
taxable income before “special
Note: Don’t include Ore gon dividend deductions on line
deductions”
11. All allowable Ore gon dividend deductions are sub-
2.
Subtract:
tracted on line 9.
a.
Dividends described in IRC
2a. ________
Use Schedule ASC-CORP to report the amount and
§243(d)(1) that are actually
description of each difference not already reported else-
interest on deposits
where on your return. Use the numeric description code
b.
Dividends described in IRC
2b. ________
from the list in Appendix A. The total of all “Other sub-
§245(c) and §246(d) (from FSCs
tractions” is entered on Form 20, line 11.
and DISCs)
Important: Don’t report a subtraction that’s already
c.
Dividends from debt financed
2c. ________
included on lines 8 through 10.
stock
“Other subtractions” include:
d.
Dividends from corporations
2d. ________
included in consolidated
• Bad debt reserve addition of a financial institution
Oregon return
to the extent that the Oregon amount exceeds the
e.
IRC §78 Gross-Up
2e. ________
amount that’s allowed on the federal return. A sub-
f.
Dividends not treated as
2f. ________
traction is also made if the amortization of the federal
dividends under IRC §243(d) or
reserve is greater than the amortization of the Oregon
§965(c)(3)
reserve. (ORS 317.310)
• Cancellation of debt (COD) income IRC §108(i). Tax-
g.
Dividends described in IRC
2g. ________
payers with income that arose from cancellation of debt
§246(a) or (c) that don’t receive
for the reacquisition of a debt instrument after Decem-
a deduction
ber 31, 2008, and before January 1, 2011, for less than
3.
Total (add lines 2a through 2g)
3. ________
its adjusted issue price, were allowed to elect defer ral
4.
Balance subject to 70% (or 80%)
4. ________
of income recognition for federal purposes, but not for
deduction (line 1 minus line 3)
Oregon. The exclusion from federal income created an
5.
Percentage deduction
5. ________
addition on the Oregon return. As this income is sub-
sequently recognized on your federal return you may
6.
Subtotal deduction (line 5 × line 4)
6. ________
subtract for Oregon the amount that was previously
7.
Add:
included in Oregon income. (ORS 317.301)
a.
Dividends described in IRC
7a. ________
• Charitable contribution. Subtract the amount by
§245(c) and §246(d) (from FSCs
which a corporation must reduce its charitable contri-
and DISCs) (100%)
bution deduction under IRC §170(d)(2)(B). (ORS 317.307)
b.
Dividends from debt financed
7b. ________
• Deferred gain recognized from out-of-state dispo-
stock (same as federal
sition of property acquired in an IRC §1031 or 1033
deduction)
exchange. See ORS 317.327 regarding the computa-
tion of the subtraction if gain or loss is recognized for
c.
Dividends from corporations
7c. ________
federal tax purposes but not taken into account in the
included in consolidated
computation of Oregon taxable income.
Oregon return (100%)
• Depletion. Oregon deduction in excess of federal
d.
IRC §78 Gross-Up (100%)
7d. ________
allowance. (ORS 317.374)
8.
Total Oregon deduction
8. ________
• Depreciation differences. If your Oregon deprecia-
tion isn’t the same as your federal depreciation, the
Line 10. Income of nonunitary corporations. Net income
difference is a required modification to your Oregon
of nonunitary corporations included in a consolidated
return. (ORS 317.301) Use the Depreciation Schedule for
federal return must be eliminated from the Oregon
Individuals, Partnerships, Corporations, and Fiduciaries,
return. Net income includes the separate taxable income,
150-101-025 to determine the Oregon modification.
as determined under Treasury Regulations adopted for
• Federal credits. Subtract the amount of expense not
IRC §1502, and any deductions, additions, or items of
deducted on the federal return attributable to claim-
income, expense, gain, or loss for which consolidated
ing a federal credit. (ORS 317.303)
treatment is prescribed. Attach a schedule showing com-
• Federal investment tax credit on certain assets. If you
putation of the net income eliminated. [ORS 317.715(2)]
take a federal tax credit on certain assets, and your
13
150-102-020-1 (Rev. 10-14)
Form 20 Instructions

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