Instructions For Form 20 - Oregon Corporation Excise Tax

federal basis is less than your Oregon basis, you must

How is the subtraction computed? Multiply the Ore-

refigure the gain or loss on disposal of those assets

gon taxable income figure (Form 20, line 15) as com-

and subtract the difference. (ORS 317.356)

puted without applying this subtraction by the sum of

• Film production labor rebate. Subtract the amount

50 percent of the ratio of the payroll from the certified

received as a labor rebate and included in federal

facility over the corporation’s total payroll within Ore-

taxable income in determining your Oregon taxable

gon, plus 50 percent of the ratio of the average value of

income. (ORS 317.394)

property from the certified facility over the corpora-

• Gain or loss on the sale of depreciable property. The

tion’s total average value of property in Oregon.

difference in gain or loss on the sale of business assets

Corporations that do business both inside and outside

when your Oregon basis is greater than your federal

of Oregon and complete Schedule AP must claim the

basis. (ORS 317.356)

subtraction on Schedule AP-2, line 10b.

• IC-DISC commission payments. For tax years begin-

• REITs and RICs. A REIT or RIC meeting the federal

ning on or after January 1, 2013, a deduction is allowed

affiliate definition, must be included in the consoli-

for commission payments made to an IC-DISC if the

dated Oregon return. This is an Oregon modification

DISC was formed on or before January 1, 2014.

(addition or subtraction) to federal taxable income. For

• Inventory costs. The costs allocable to inventory are

apportioning taxpayers, factors from the REIT or RIC

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

are included in the apportionment calculation. (ORS

in depreciation and depletion allocable to inventory

317.010 and rules)

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

• Sale of manufactured dwelling park. The taxable

• Land donation or bargain sale of land to educa-

gain attributable to the sale of a manufactured dwell-

tional institutions. Enter the fair market value of land

ing park to a tenant’s association, facility purchase

donated or the amount of the reduction in sales price of

association or tenant’s association supported nonprofit

land sold to a school district. The subtraction is limited

organization is exempt from tax (note following ORS

to 50 percent of Oregon taxable income. (ORS 317.488)

317.401).

• Listed foreign jurisdictions—previously included

Line 14. Net loss and net capital loss deductions.

income. Taxable income of any unitary corporation

that’s incorporated in a listed foreign jurisdiction and

Net loss deduction.

isn’t otherwise required to file a consolidated fed-

• A net loss is the amount determined under IRC chap-

eral return (subject corporation) shall be included in

ter 1, subtitle A, with the modifications specifically

Oregon income. See ORS 317.715 for the listed foreign

prescribed under Oregon law.

jurisdictions.

• The Oregon deduction is the sum of unused net losses

If a portion of income of a subject corporation was

assigned to Oregon for preceding taxable years.

previously included in Oregon taxable income, claim

• A net operating loss carryforward is required to be

a separate “Other subtraction” for the portion of the

reduced by the entire Oregon taxable income of inter-

income that was previously included. Don’t combine

vening tax years. [ORS 317.476(4)(b)]

previously included income with “Other additions.”

• Enter the deduction on line 14 if taxable only by

See “Other additions” for more information.

Oregon.

Note: Don’t report losses from a subject corporation as

• Enter the deduction on Schedule AP-2, line 10a if tax-

an “Other subtraction.” See “Other additions” for how

able both in Oregon and another state.

to report a loss. For more information, see ORS 317.715

• Net losses can be carried forward up to 15 years.

and the corresponding administrative rules.

• Oregon doesn’t allow net losses to be carried back.

• Losses from outside the United States. Subtract losses

• For losses, and built-in losses occurring before a

from sources outside the United States, as defined in

change in ownership (SRLY limitations), Oregon is

IRC §862, not included in federal taxable income under

tied to the federal limitations. (IRC §382 and §384; ORS

IRC §861 to §864. (ORS 317.625)

317.476 and 317.478)

• Manufactured dwelling park tenant payments made

• The total net loss deduction on a consolidated Oregon

under ORS 90.505 to 90.840 to compensate a tenant for

return is the sum of the net losses available to each

costs incurred due to the closure of the park may be

of the corporations subject to the limitations in OAR

subtracted. (ORS 317.092)

150-317.476(4).

• Oregon Investment Advantage (ORS 317.391). To

• Real Estate Investment Trusts (REITs), if qualified

qualify, facilities must be certified by the Oregon Busi-

under IRC §856, aren’t allowed a net loss deduction.

ness Development Department (dba Business Oregon).

[ORS 317.476(5)]

For more information about the program or to get an

• Attach a schedule showing your computations.

application, visit This applies

to excise tax filers only.

Net capital loss deduction

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

Form 20 Instructions

Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 14

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