Instructions For Form 20-I - Oregon Corporation Income Tax

Additions

disclosure to a donor to acknowledge this. The Attor-

ney General will publish online and otherwise make

Line 2. Certain interest income excluded from the fed-

publicly available information identifying the chari-

eral return. Oregon gross income includes interest on all

table organizations receiving a disqualification order.

state and municipal bonds or other interest excluded for

If you claimed a federal deduction, an addition must

federal tax purposes. Reduce the addition by any interest

be made on your Oregon return for donations to such

incurred to carry the obligations and by any expenses

charitable organizations.

incurred in producing this interest income. (ORS 317.309)

• Child Care Office contributions. The deduction

Line 3. Oregon excise tax and other state or foreign

claimed on the federal return must be added back to

taxes on or measured by net income. Oregon excise

federal taxable income on the Oregon return if the

tax may not be deducted on the Oregon return. Taxes of

Oregon credit’s claimed. (ORS 315.213)

other states or foreign governments on or measured by

• Claim of right income repayment adjustment when

net income or profits may not be deducted on the Ore-

credit’s claimed. The deduction under IRC §1341 on

gon return. If you subtracted these taxes on your federal

the federal return must be added back to federal tax-

return, you must add them back on your Oregon return.

able income on the Oregon return if the Oregon cred-

However, the Oregon minimum tax and local taxes, such

it’s claimed. (ORS 317.388)

as the Multnomah County Business Income tax, are

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

deductible, and aren’t required to be added back. (ORS

sition of property acquired in an IRC §1031 or 1033

317.314)

exchange. See ORS 317.327 regarding the computation

Line 4. Income of related FSC or DISC. Net income or

of the addition if gain or loss is recognized for federal

loss must be included in the net income of the related

tax purposes but not taken into account in the compu-

U.S. affiliate. (ORS 317.283 and 317.286)

tation of Oregon taxable income.

• Dependent care credits. The business expense

Line 5. Total other additions. The amount by which any

deducted for providing dependent care assistance,

item of gross income is greater under Oregon law than

information, or referral services must be reduced by

under federal law, or the amount by which any allowable

the amount of dependent care credit claimed. [ORS

deduction is less under Oregon law than under federal

315.204(7)]

law, is an addition on your Oregon return.

• Depletion (percentage in excess of cost). Percentage

Use Schedule ASC-CORP to report the amount and

depletion is allowed only on metal mines. All other

description of each difference not already reported else-

assets are limited to cost of depletion. (ORS 317.374)

where on your return. Use the numeric description code

• Depreciation differences. If your Oregon deprecia-

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

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

tions” is entered on Form 20-I, line 5.

difference is a required modification to your Oregon

Important: Don’t report an addition that’s already

return. (ORS 317.301) Use the Depreciation Schedule for

included on lines 2 through 4.

Individuals, Partnerships, Corporations, and Fiduciaries,

150-101-025 to determine the Oregon modification.

“Other additions” include:

• Film production development contributions. Add

• Alternative fuel vehicle fund (auction) credit. If you

back the amount of contribution for which a tax credit

claim any amount you paid for this credit as a deduc-

certification is made that’s allowed as a deduction for

tion on your federal return, you must add back that

federal tax purposes. (ORS 315.514)

amount to your Oregon income.

• Gain or loss on the disposition of depreciable prop-

• Bad debt reserve addition of a financial institution

erty. Add the difference in gain or loss on sale of busi-

to the extent that the federal amount exceeds the

ness assets when your Oregon basis is less than your

amount that’s allowable for Oregon. The bad debt

federal basis. (ORS 317.356)

method of financial institutions is tied to the federal

• Income from sources outside the United States. Add

method. For taxpayers required to use the specific

income from sources outside the United States, as

write-off method, an addition must be made if the

defined in IRC §862, not included in federal taxable

amortization of the federal reserve is less than the

income under IRC §861 to §864. (ORS 317.625)

amortization of the Oregon reserve. (ORS 317.310)

• Individual development accounts credit. Donations

• Capital construction fund. Amounts deferred under

deducted on the federal return must be added back to

Section 607 of the Merchant Marine Act of 1936 and

Oregon income if the credit’s claimed. [ORS 315.271(2)]

IRC §7518 must be added back to income. (ORS 317.319)

• Intercompany transactions involving intangible

• Charitable donations not allowed for Oregon. Dona-

assets. The user of the intangible asset must add the

tions to a charitable organization that has received a

royalty or other expense for such use to federal tax-

disqualifying order from the Attorney General aren’t

deductible as charitable donations for Oregon tax pur-

able income as an “other addition” on the Oregon tax

poses. Such organizations are required to provide a

return if:

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

Form 20-I Instructions

Instructions For Form 20-I - Oregon Corporation Income Tax - 2014 Page 9

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