Instructions For Form 41 - Oregon Fiduciary Income Tax - 2014 Page 6

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A = Form 41, line 30, (Oregon-source items only)
Part-year resident and nonresident fiduciaries
B = Form 41, line 30, (all source items)
C = Federal tax (lesser of actual liability or $6,350)
Part-year resident trusts—use Schedule P to figure the
A
Oregon tax. File Schedule P with Form 41.
× C = $___________ amount of the subtraction
B
Oregon taxes gross income from all sources for the portion
of the tax year the trust was an Oregon resident and gross
Enter on Form 41, Schedule 2, line 31.
income from Oregon sources only while the trust was a
nonresident.
Oregon source income
All federal deductions are allowed for the portion of the
Oregon is permanently tied to the federal definition of gross
year the trust was an Oregon resident. But only deductions
income as found in the Internal Revenue Code. This tie is
directly related to Oregon sources are allowed while the trust
retroactive to December 31, 2010.
was a nonresident.
Examples of Oregon source income are: wages or other
A part-year resident trust required to file Form 41 must
compensation for services performed in Oregon; income or
attach a copy of federal Form 1041 as filed. See “Filing
loss from business activities in Oregon, including rents, S
requirements” instructions. To determine your total Oregon
corporations, and partnerships; gain or loss from the sales
taxable income for the year, you may choose to complete a
of real or tangible personal property located in Oregon;
second “pro forma, mock” federal Form 1041, using only
income from intangible personal property if the property
Oregon source income and deductions, or you may develop
a schedule of the amounts of income, gain, loss, and deduc-
has acquired Oregon business situs.
tions for Oregon. The full federal exemption amount is
For more information, see OAR 150-316.127 and the 2014
allowed. If you choose to complete a “pro forma, mock” fed-
Oregon Nonresident and Part-Year Resident income tax
eral Form 1041, write “Oregon Source Income” at the top of
booklet.
the form to distinguish it from the actual federal Form 1041
you filed for federal tax purposes.
How to assemble the return
Use the figures from the Oregon source Form 1041 (or
Oregon source schedule) you prepared, to complete Form
Assemble your Oregon fiduciary return in the following order:
41. Complete lines 1 through 7 and Form 41, Schedules 1
1. Form 41, pages 1 and 2. Attach Form W-2, 1099, or OR-19
and 2 as though the Oregon source amounts were the only
to the left margin on the front, if they show Oregon with-
income and deductions for the tax year. The full federal tax
holding Attach the following to the bottom half of page 1:
subtraction is allowed on line 31 based on the federal liability
1a. Bankruptcy estates. Written request for a prompt
from Form 1041 and subject to the $6,350 limit.
audit.
Then complete Schedule P, using the figures from Form
1b. Election for Final Tax Determination for Income Taxes
1041, to figure Oregon tax. Write this amount on Oregon
and Application for Discharge from Personal Liability
Form 41, line 8.
for Tax of a Decedent’s Estate, 150-101-151. You may
Nonresident estates and trusts—A nonresident estate or
also file this separately after you file Form 41.
trust required to file Form 41 must attach a copy of federal
2. Schedule P (if part-year resident trust).
Form 1041 as filed. See “Filing requirements” on page 2.
3. “Pro forma, mock” Form 1041 or a schedule of Oregon-
Oregon taxes only Oregon-source income received by the
source income and deductions, if the return is from a
estate or trust. Deductions are allowed if they are directly
part-year resident trust or nonresident estate or trust.
related to Oregon-source income. The only exception is
the federal tax subtraction, which must be apportioned as
4. Form 24, Like-Kind Exchanges/Involuntary Conversions.
shown below.
5. A copy of federal Form 1041 and all schedules, including
Schedule K-1.
To determine your total Oregon taxable income for the year,
you may choose to complete a second federal Form 1041
6. A copy of federal Form 8855, Election to Treat a Qualified
using only Oregon-source income and deductions (a “pro
Revocable Trust as Part of an Estate, if it applies.
forma, mock” return), or you may develop a schedule of the
7. Credit for income tax paid to another state. Attach the
amounts of income, gain, loss, and deductions for Oregon.
other state’s tax return and proof of income tax payment.
The full federal exemption amount is allowed. If you choose
Staple the pages together at the top left corner.
to complete a “pro forma, mock” federal Form 1041, write
“Oregon-Source Income” at the top of the form to distinguish
Authorize your preparer. To authorize your preparer to dis-
it from the actual federal Form 1041 you filed for federal tax
cuss your return with us, check the box located between
purposes.
the signature lines for the fiduciary and the preparer. To
Federal tax subtraction for nonresidents—The federal tax
authorize a person other than the preparer, please attach a
signed Tax Information Authorization and Power of Attorney for
subtraction must be apportioned to determine the amount
related to Oregon sources. Use this formula:
Representation.
6
150-101-041 (Rev. 10-14)

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