Instructions For Form 20-I - Oregon Corporation Income Tax

• Sale of manufactured dwelling park. The taxable gain

positive number. Attach a schedule showing how you

attributable to the sale of a manufactured dwelling

figured the interest.

park to a tenant’s association, facility purchase associa-

• Tax paid on composite return. Subtract the amount of

tion or tenant’s association supported nonprofit organi-

tax that was paid on behalf of any corporation included

zation is exempt from tax. (note following ORS 317.401).

in the consolidated return if they elected to be part of

Net loss and net capital loss deductions are entered on

an Oregon Composite Return, 150-101-154. The amount

Schedule AP for Form 20-I filers.

can be found on Schedule OC2, column g, “net tax.”

Enter the amount as a negative number.

Net loss deduction

Line 19. Tax before credits (line 18 plus line 17).

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

ter 1, subtitle A, with the modifications specifically

Credits

prescribed under Oregon law.

• The Oregon deduction is the sum of unused net losses

For a complete list and description of all Oregon cor-

assigned to Oregon for preceding taxable years.

poration cred its, including links to certifying agencies

• An NOL carryforward is required to be reduced by the

and forms, visit , click on

entire Oregon taxable income of intervening tax years.

“Corporate Taxes” on the left navigation bar, then click on

[ORS 317.476(4)(b)]

“2014 Credits” under “What’s new for 2014”.

• Enter the deduction on Schedule AP-2, line 10a for net

Important:

losses assigned to Oregon during the preceding tax-

able years (and not previously deducted).

• If you’re claiming credits that require certification,

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

make sure to include a copy of the certification with

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

your return.

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

• All credits are claimed on Schedule ASC-CORP.

in ownership (SRLY limitations), Oregon is tied to the

• All carryforward amounts are claimed separately from

federal limitations. (IRC §382 and §384; ORS 317.476

current-year credits.

and 317.478)

• Remember to attach any documentation required to be

• The total net loss deduction on a consolidated Oregon

submitted to claim credits including certifications.

return is the sum of the net losses available to each

• Taxpayers must take the full amount of a credit allowed

of the corporations subject to the limitations in OAR

per year. (ORS 314.078)

150-317.476(4).

Line 20. Total other credits. Use Schedule ASC-CORP

• Real Estate Investment Trusts (REITs), if qualified

to report the amount and description of “Other credits”.

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

Use the numeric description code from the list in Appen-

[ORS 317.476(5)]

dix A. The total of all “Other credits” is entered on Form

• Attach a schedule showing your computations.

20-I, line 20.

Net capital loss deduction

Line 21. Income tax after credits (line 19 minus line 20).

• Enter the deduction on Schedule AP-2, line 10b.

Enter -0- if line 20 is greater than line 19.

• Oregon allows a net capital loss deduction for losses

apportioned to Oregon and carried from another year.

Line 22. LIFO benefit recapture. This amount is a sub-

• The deductible loss is limited to net capital gain

traction from tax after credits. Oregon has adopted the

included in Oregon income.

provisions of IRC §1363(d) for S corporations. LIFO ben-

• Attach a schedule showing your computations includ-

efits are included in taxable income for the last year of

ing the tax year the net capital loss originated. (OAR

the C corporation under these provisions. On a separate

150-317.013)

schedule, compute the difference between tax (after cred-

its and any surplus refund) on income per the return and

Tax

income without the recapture of LIFO benefits. Multiply

Line 17. Calculated income tax. Is Oregon taxable

this difference by 75 percent and enter the result on Form

income $1 million or less? If so, multiply Oregon taxable

20-I, line 22 as a subtraction from the tax after credits.

income by 6.6 percent and enter the result. Enter -0- if the

Attach the computation schedule to the Oregon return.

result is negative or zero.

On the LIFO benefits line of each of the first three returns

Is Oregon taxable income greater than $1 million? If so,

of the new S corporation, add one-third of the tax that

multiply the amount that’s greater than $1 million by 7.6

was deferred from the last year of the C corporation.

percent, and add $66,000. Enter the result.

(ORS 314.750)

Line 18. Tax adjustments.

Net income tax

• Installment sales interest. If you owe interest on

Line 23. Net income tax (line 21 minus line 22). Income

deferred tax liabilities with respect to installment

obligations under ORS 314.302, enter the amount as a

filers don’t pay a minimum tax.

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

Form 20-I Instructions

Instructions For Form 20-I - Oregon Corporation Income Tax - 2014 Page 13

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