Instructions For Form 20-I - Oregon Corporation Income Tax

income, expense, gain, or loss for which consolidated

• Federal investment tax credit on certain assets. If you

take a federal tax credit on certain assets, and your

treatment is prescribed. Attach a schedule showing com-

putation of the net income eliminated. [ORS 317.715(2)]

federal basis is less than your Oregon basis, you must

refigure the gain or loss on disposal of those assets and

Line 13. Total other subtractions. The amount by which

subtract the difference. (ORS 317.356)

an item of gross income is less under Oregon law than

• Film production labor rebate. Subtract the amount

federal law, or the amount by which an allowable deduc-

received as a labor rebate and included in federal

tion is greater under Oregon law than federal law, is a

taxable income in determining your Oregon taxable

subtraction on your Oregon return. Note: Don’t include

income. (ORS 317.394)

Ore gon dividend deductions on line 13. All allowable

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

Ore gon dividend deductions are subtracted on line 11.

difference in gain or loss on the sale of business assets

Use Schedule ASC-CORP to report the amount and

when when your Oregon basis is less than your federal

description of each difference not already reported else-

basis. (ORS 317.356)

where on your return. Use the numeric description code

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

from the list in Appendix A. The total of all “Other sub-

ning on or after January 1, 2014, a deduction is allowed

tractions” is entered on Form 20-I, line 13.

for commission payments made to an IC-DISC if the

DISC was formed on or before January 1, 2014.

Important: Don’t report a subtraction that’s already

• Inventory costs. The costs allocable to inventory are

included on lines 8 through 12.

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

“Other subtractions” include:

in depreciation and depletion allocable to inventory

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

• Bad debt reserve addition of a financial institution

• Land donation or bargain sale of land to educa-

to the extent that the Oregon amount exceeds the

tional institutions. Enter the fair market value of land

amount that’s allowed on the federal return. A sub-

donated or the amount of the reduction in sales price of

traction is also made if the amortization of the federal

land sold to a school district. The subtraction is limited

reserve is greater than the amortization of the Oregon

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

reserve. (ORS 317.310)

• Listed foreign jurisdictions—previously included

• Cancellation of debt (COD) income IRC §108(i). Tax-

income. Taxable income of any unitary corporation that’s

payers with income that arose from cancellation of debt

incorporated in a listed foreign jurisdiction and isn’t

for the reacquisition of a debt instrument after Decem-

otherwise required to file a consolidated federal return

ber 31, 2008, and before January 1, 2012, for less than

(subject corporation) shall be included in Oregon income.

its adjusted issue price, were allowed to elect defer ral

See ORS 317.715 for the listed foreign jurisdictions.

of income recognition for federal purposes, but not for

If a portion of income of a subject corporation was

Oregon. The exclusion from federal income created an

previously included in Oregon taxable income, claim

addition on the Oregon return. As this income is sub-

a separate “Other subtraction” for the portion of the

sequently recognized on your federal return you may

income that was previously included. Don’t combine

subtract for Oregon the amount that was previously

previously included income with “Other additions.”

included in Oregon income. (ORS 317.301)

See “Other additions” for more information.

• Charitable contribution. Subtract the amount by

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

which a corporation must reduce its charitable contri-

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

bution deduction under IRC §170(d)(2)(B). (ORS 317.307)

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

• Deferred gain recognized from out-of-state dispo-

and the corresponding administrative rules.

sition of property acquired in an IRC §1031 or 1033

exchange. See ORS 317.327 regarding the computa-

• Losses from outside the United States. Subtract losses

from sources outside the United States, as defined in

tion of the subtraction if gain or loss is recognized for

IRC §862, not included in federal taxable income under

federal tax purposes but not taken into account in the

computation of Oregon taxable income.

IRC §861 to §864. (ORS 317.625)

• Depletion. Oregon deduction in excess of federal

• Manufactured dwelling park tenant payments made

under ORS 90.505 to 90.840 to compensate a tenant for

allowance. (ORS 317.374)

• Depreciation differences. If your Oregon deprecia-

costs incurred due to the closure of the park may be

tion isn’t the same as your federal depreciation, the

subtracted. (ORS 317.092)

difference is a required modification to your Oregon

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

return. (ORS 317.301) Use the Depreciation Schedule for

affiliate definition, must be included in the consoli-

Individuals, Partnerships, Corporations, and Fiduciaries,

dated Oregon return. This is an Oregon modification

150-101-025 to determine the Oregon modification.

(addition or subtraction) to federal taxable income. For

• Federal credits. Subtract the amount of expense not

apportioning taxpayers, factors from the REIT or RIC

deducted on the federal return attributable to claiming

are included in the apportionment calculation. (ORS

a federal credit. (ORS 317.303)

317.010 and rules)

150-102-021-1 (Rev. 10-14)

Form 20-I Instructions

Instructions For Form 20-I - Oregon Corporation Income Tax - 2014 Page 12

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