Fillable Form Fia-40 - Oregon Farm Income Averaging

from 2013 Form FIA-40, line 4, on his 2014 Form FIA-40, line

Example 1. Kevin Crooper did not income average for tax

20. He adds lines 18, 19, and 20 and enters $1,515 on line 21.

year 2011 or 2012 but he did income average for tax year

This is the recomputed tax he paid for the 2011, 2012, and

2013 and he wants to income average for tax year 2014. For

tax years 2011, 2012, and 2013 Kevin filed joint returns. His

2013 tax years.

filing status for tax year 2014 is also married filing jointly.

Kevin subtracts the recomputed tax of $1,515 on line 21 from

For tax year 2011, Kevin’s taxable income from Form 40, line

the recomputed tax of $3,463 on line 17 and enters the result

28 is $1,112. For tax year 2012, Kevin’s taxable income from

of $1,948 on line 22. He figures his tax on $27,900 using the

Form 40, line 28 is $14,250. For tax year 2013, Kevin’s taxable

tax tables and enters $2,060 on line 23. Because the FIA tax is

income from Form 40, line 28 is $12,777. For tax year 2014,

less than the tax tables, he will enter $1,948 on line 24. This

Kevin’s taxable income from Form 40, line 28 is $27,900 and

is Kevin’s 2014 tax liability from farm income averaging. He

his elected farm income is $24,000. For the tax years above,

enters this figure on Form 40, line 29, and checks box 29b.

he has no net operating losses, no net operating carryfor-

wards or carrybacks and no capital losses.

Example 2. John Farmington did not use farm income aver-

aging for 2011, 2012, or 2013. For tax year 2014, John has

For 2013, Kevin had $12,777 of taxable income and elected to

elected farm income on Form FIA-40, line 2 of $18,000. His

farm income average $9,000, leaving Oregon taxable income

Oregon taxable income shown on his 2011 Form 40, line 28,

on his 2013 form FIA-40, line 3, of $3,777. For 2011, Kevin’s

is $6,150.

recomputed taxable income after adding one-third of elected

John had a net operating loss (NOL) for tax year 2012 of

farm income from his 2013 Form FIA-40, line 11 is $4,112.

$22,950, which he elected to carryback five years. Of the

For 2012, Kevin’s recomputed taxable income after adding

$22,950 loss, $9,000 was carried back to tax year 2011. To

one-third of his elected farm income from his 2013 Form

complete line 1 of the 2011 worksheet, John combines the

FIA-40, line 15 is $17,250. For 2013, Kevin’s recomputed tax

after removing his elected farm income is $188 from 2013

$9,000 net operating loss deduction (NOLD) with his 2011

Form FIA-40, line 4.

Oregon taxable income of $6,150 from Form 40, line 28. The

result, a negative $2,850, is entered on the 2011 worksheet,

For tax year 2014, Kevin’s Oregon taxable income is $27,900.

line 1.

On line 2 Kevin enters his elected farm income of $24,000.

He subtracts line 2 from line 1 and enters $3,900 on line 3.

When John filed his 2011 tax return, he had a $3,000 net

This is his remaining Oregon taxable income. He calculates

capital loss deduction on federal Schedule D, line 21, a $7,000

his 2014 Oregon tax using the tax tables under married filing

loss on federal Schedule D, line 16, and a $4,000 capital loss

joint status and enters $198 on line 4.

carryover to 2012. However, when John carried back the 2012

NOL to 2011, he refigured his 2011 capital loss carryover to

For 2011, Kevin enters $4,112 from his 2013 Form FIA-40,

tax year 2012 as $7,000. To calculate line 2 of the 2011 work-

line 11, on his 2014 Form FIA-40, line 5. He divides his

sheet, John adds the $3,000 from federal Schedule D, line

elected farm income of $24,000 by 3 and enters $8,000 on his

21, and the $7,000 carryover. He subtracts from the result

2014 Form FIA-40, line 6. He adds lines 5 and 6 and enters

the $7,000 loss on his federal Schedule D, line 16, and enters

$12,112 on line 7. This is his recomputed 2011 Oregon tax-

$3,000 on the 2011 worksheet, line 2.

able income. He calculates his 2011 Oregon tax using the

2011 tax tables under married filing joint status and enters

John had $6,150 of Oregon taxable income in 2011 that

$729 on line 8.

reduced the 2012 NOL carryback. The $3,000 net capital loss

deduction also reduced the amount of the 2012 NOL carry-

For 2012, Kevin enters $17,250 from his 2013 Form FIA-40,

back. Since these two figures together total $9,150, there is

line 15, on his 2014 Form FIA-40, line 9. He enters $8,000

no NOLD left to carry over to tax year 2013. Therefore, John

from his 2014 Form FIA-40, line 6, on his 2014 Form FIA-40,

enters -0- on line 3. John adds line 1, a negative $2,850, line 2,

line 10. He adds lines 9 and 10 and enters $25,250 on line 11.

a positive $3,000, and line 3. He enters the result, a positive

This is his recomputed 2012 Oregon taxable income. He cal-

$150, on line 4 of the worksheet and on 2014 Form FIA-40,

culates his 2012 Oregon tax using the 2012 tax tables under

line 5. This figure represents John’s recomputed Oregon

married filing joint status and enters $1,839 on line 12.

taxable income for tax year 2011.

For 2013, Kevin enters $3,777 from his 2013 Form FIA-40, line

For tax year 2012, John’s taxable income from Form 40, line

3, on his 2014 Form FIA-40, line 13. He enters $8,000 from his

28 is negative $30,250, which he enters on the 2012 work-

2014 Form FIA-40, line 6, on his 2014 Form FIA-40, line 14.

sheet, line 5.

He adds lines 13 and 14 and enters $11,777 on line 15. This is

his recomputed 2013 Oregon taxable income. He calculates

John had a $3,000 net capital loss deduction on Schedule D,

his 2013 Oregon tax using the 2013 tax tables under married

line 21 and a $7,000 loss on Schedule D, line 16, the carryover

filing joint status and enters $697 on line 16.

from 2011 to 2012. John adds the $3,000 from Schedule D, line

21, and the $7,000 carryover. He subtracts from the result

On his 2014 Form FIA-40, he adds lines 4, 8, 12, and 16 and

the $7,000 loss on Schedule D, line 16, and enters $3,000 on

enters $3,463 on line 17. He enters his recomputed 2011 tax

line 6 of the worksheet. John enters $22,950 on line 7 of the

of $208 from 2013 Form FIA-40, line 12, on his 2014 Form

worksheet, his 2012 NOL.

FIA-40, line 18. Kevin enters his recomputed 2012 tax of

$1,119 from 2013 Form FIA-40, line 16, on his 2014 Form

John adds lines 5, 6, and 7 (< $30,250 > + $3,000 + $22,950)

FIA-40, line 19. He enters his recomputed 2013 tax of $188

and enters the result, negative $4,300, on line 8 of the work-

150-101-160 (Rev. 12-14)

Form Fia-40 - Oregon Farm Income Averaging - 2014 Page 4

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