Instructions For Form 41 - Oregon Fiduciary Income Tax

a specific line. Attach a schedule that details the amount and

Schedule 1—Oregon changes

nature of each subtraction included on this line. Enter the

fiduciary’s share of the fiduciary adjustment from another

Line 24. Changes in depreciation. Enter your depreciation

estate or trust that is a subtraction on this line. Also, enter

difference between Oregon and federal. You will need the

any additional federal income tax paid during the tax year

Oregon Depreciation Schedule if your federal and state depre-

for prior years and not deducted on any prior year return.

ciation are different.

To determine the amount deductible, refer to the 2014 indi-

Line 25. Other changes. Changes include differences

vidual return instructions for Form 40, line 18.

between the federal return and the Oregon return in gains or

losses from the sale of property. Also use this line to report

Line 37. Interest on obligations of other states. Enter interest

differences in capital gains from the sale of farm use and

income from bonds of a state or political subdivision other

forest use lands acquired from a decedent who died before

than Oregon. (This type of income from another fiduciary is

1987. Enter the amount in column B. Also enter the amount

included in that fiduciary’s adjustment and should not be

in column A if an authorized distribution was made, and

duplicated on this line.)

the gains qualify for inclusion in distributable net income.

Line 38. Depletion. If natural resource depletion entered on

Electing small business trust. Amounts not included in fed-

Form 1041 is in excess of the adjusted basis of the property,

eral distributable net income of an electing small business

enter the excess on this line.

trust under IRC Section 641(c) must be included in column

B, line 25.

Line 39. Estate tax paid on “income in respect of a dece-

dent” (IRD). To figure the amount of the federal estate tax

Net long-term capital gain. Enter the net long-term capi-

deduction that must be added to taxable income on the

tal gain (NLTCG) from farm assets that was not distributed

Oregon return, use this formula:

as a negative number in Schedule 1, column B, line 25. The

subtraction cannot exceed the amount of income that is

A = IRD included in federal taxable income

reported for the fiduciary from federal Form 1041, line 22.

B = IRD not taxable by Oregon

Line 29. Oregon changes distributed. Enter Oregon

C = estate tax deducted on Form 1041

changes from column A, line 26, that were distributed to

× C = $___________ amount of the addition

the beneficiaries. Enter zero if the amount on Form 1041,

Schedule B, line 8 or line 11, is less than the amount on

Schedule B, line 7.

Enter amount on line 39.

The total of this line, plus the amounts from Form 1041,

Example:

Schedule B, lines 12 and 15, can’t exceed the amount on

A: $21,000 IRD included in federal taxable income.

Schedule B, line 8 or 11.

B: $10,000 IRD not taxable by Oregon.

C: $1,170 federal estate tax deducted on Form 1041.

Schedule 2—Fiduciary adjustment

($10,000 / $21,000) x $1,170 = $562—amount of your Oregon

This schedule is for figuring net Oregon modifications to

addition on line 39.

federal taxable income.

Line 40. Other additions. Enter other additions required

Line 31. Federal income tax subtraction. This subtraction

by ORS 316.680 and 316.695 that do not have a specific line.

can’t exceed $6,350 for 2014. To figure the subtraction, deduct

Attach a schedule that details the amount and nature of each

the amount on federal Form 1041, Schedule G, lines 5 and

addition included on this line. Enter this fiduciary’s share

6, from the amount on federal Form 1041, line 23. For addi-

of the fiduciary adjustment from another estate or trust that

tional federal tax paid for years before 2014, see instructions

is an addition on this line. Also enter federal tax refunds

for line 34.

received during the tax year from prior years, if the federal

Line 32. Interest on U.S. obligations. Enter the amount

tax subtraction reduced the Oregon tax in prior years.

of interest from U.S. government obligations included in

Deductions allowed under IRC sections 2053 or 2054 may

federal income and not otherwise deducted. U.S. govern-

be claimed on either Form OR706, Oregon Estate Transfer Tax

ment interest received from another fiduciary should be

Return; or Form 41, Oregon Fiduciary Income Tax Return; but

subtracted on line 34. Don’t subtract that income a second

time on this line. The total of interest or dividends from U.S.

not both. The personal representative of an estate may make

obligations included on federal Form 1041 must be reduced

different elections for federal and Oregon returns. If the

by the deductions allocable to such income (see Form 1041

deductions are claimed on Form 41, attach a statement that

instructions, Allocation of Deductions for Tax Exempt Income).

the deductions are not being claimed on Form OR706. For

Use the same formula to allocate deductions to U.S. govern-

federal purposes, those deductions may be taken on either

ment interest.

Form 706, federal Estate Tax Return; or Form 1041, federal

Line 34. Other subtractions. Enter other subtractions

Income Tax Return for Estates and Trusts, under IRC 642(g).

See OAR 150-118.010(2).

required by ORS 316.680 and ORS 316.695 that do not have

150-101-041 (Rev. 10-14)

Instructions For Form 41 - Oregon Fiduciary Income Tax - 2014 Page 5

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