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What types of records should be kept to support business vehicle usage?

  • Trip log showing date and mileage (correct)
  • School reports and report cards
  • Personal correspondence
  • Utility bills for the home

    • How long should you keep records that support an item of income or deduction?

  • Only during the tax year they were filed
  • Until you no longer need them
  • At least until the statute of limitations expires (correct)
  • For a minimum of five years after filing

    • Which statement is true regarding the sale of a capital asset?

  • Evidence of the purchase price is not required
  • Documentation of depreciation is optional
  • It must show the acquisition cost and gross selling price (correct)
  • It does not need to be reported if a loss occurs

    • What should you keep if you received property as a gift?

    <p>The donor’s adjusted basis and fair market value</p> Signup and view all the answers

    For how long should you keep records that support your basis in property after selling it?

    <p>At least four years after the sale</p> Signup and view all the answers

    Which of the following is an acceptable document for tracking expenses?

    <p>Trip sheet detailing expenses incurred</p> Signup and view all the answers

    What filing status can married taxpayers with different residency statuses use for their Oregon returns?

    <p>Either married filing jointly or separately</p> Signup and view all the answers

    What should be included in the records for property improvements?

    <p>Proof of purchase price and expenses incurred</p> Signup and view all the answers

    What form does an LLC that chooses to be taxed as a corporation file in Oregon?

    <p>Form OR-20</p> Signup and view all the answers

    When are exceptions made for extending the record-keeping period?

    <p>For capital improvements on property sold</p> Signup and view all the answers

    Which of the following cannot be used as a filing status for married couples in Oregon?

    <p>Head of household</p> Signup and view all the answers

    What must be filed by a PTE with nonresident owners to elect their inclusion?

    <p>Form OR-OC</p> Signup and view all the answers

    What general requirement is there for LLCs doing business in Oregon regarding taxes?

    <p>They must pay Oregon taxes as if they were corporations.</p> Signup and view all the answers

    If one spouse is an Oregon resident and the other is not, what is a filing option for them?

    <p>Either file jointly or separately</p> Signup and view all the answers

    Which form does a multiple-member LLC file if it chooses to be taxed as a partnership?

    <p>Form OR-65</p> Signup and view all the answers

    For filing in Oregon, which type of domestic partner cannot file jointly with federal taxes?

    <p>Married non-U.S. citizens without permanent resident status</p> Signup and view all the answers

    Which of the following statements regarding the pass-through entity elective tax is true?

    <p>Deductions from the elective tax must be added back on fiduciary returns.</p> Signup and view all the answers

    How long must restrictions be followed to maintain a forest conservation area under the new tax credit?

    <p>50 years</p> Signup and view all the answers

    What is the federal tax liability subtraction limit for 2023?

    <p>$7,800</p> Signup and view all the answers

    Which groups benefit from the Oregon Kids Credit?

    <p>Taxpayers with children aged 5 or younger.</p> Signup and view all the answers

    When did the Paid Leave Oregon benefits program begin paying benefits?

    <p>September 3, 2023</p> Signup and view all the answers

    What is the kicker refund based on?

    <p>The surplus of Oregon's state budget.</p> Signup and view all the answers

    What action may be necessary if benefits are received from Paid Leave Oregon?

    <p>The benefits must be reported as income.</p> Signup and view all the answers

    How can taxpayers claim the kicker credit on their tax return?

    <p>As a credit on their tax return.</p> Signup and view all the answers

    Who may automatically qualify for an extension of time to file their return?

    <p>Military personnel stationed in a designated combat zone</p> Signup and view all the answers

    What should you check on your return if you received additional time to file your federal tax return due to a disaster?

    <p>Federal disaster relief box</p> Signup and view all the answers

    How does Oregon handle extensions for filing returns if a federal extension wasn't requested?

    <p>Oregon allows extensions through Publication OR-40-EXT.</p> Signup and view all the answers

    What is the least percentage that can be withheld by escrow agents upon closing of real property sales by nonresidents?

    <p>Four percent of the consideration</p> Signup and view all the answers

    What must be filed when handling sales of real property by nonresidents in Oregon?

    <p>Form OR-41</p> Signup and view all the answers

    Which of these is NOT an amount that must be withheld by escrow agents when a nonresident sells real property?

    <p>Ten percent of the total sale price</p> Signup and view all the answers

    What is required if a nonresident owner of a Pass-Through Entity (PTE) does not elect to have taxes withheld?

    <p>A PTE must withhold tax on their share of Oregon-source income.</p> Signup and view all the answers

    If an individual has their home located in a presidentially-declared disaster area, what additional filing requirement may they face?

    <p>They may qualify for additional time to file their Oregon return.</p> Signup and view all the answers

    Which tax type relates to fiduciary, estate, and inheritance matters?

    <p>Fiduciary/estate/inheritance tax</p> Signup and view all the answers

    What is required to amend an Oregon return?

    <p>Submission of Amended Return form</p> Signup and view all the answers

    Which of the following qualifies as income that is taxable to Oregon?

    <p>Business income or loss</p> Signup and view all the answers

    What is one of the main reasons Oregon requires a federal return?

    <p>To validate income and deductions reported</p> Signup and view all the answers

    Which of the following taxes is related to agricultural workers?

    <p>Agricultural overtime tax</p> Signup and view all the answers

    What does the term 'like-kind exchange' refer to?

    <p>Real estate transactions under specific conditions</p> Signup and view all the answers

    Which of the following options is considered an adjustment in Oregon income tax?

    <p>Claim of right income repayments</p> Signup and view all the answers

    What is the penalty for not filing an Oregon income tax return?

    <p>Combined interest and penalties</p> Signup and view all the answers

    Which deduction applies to certain business expenses of reservists?

    <p>Moving expenses deduction</p> Signup and view all the answers

    What type of income do Amtrak Act wages relate to?

    <p>Interstate transportation wages</p> Signup and view all the answers

    What tax-related process involves requests for refunds?

    <p>Refund processing procedures</p> Signup and view all the answers

    Which of these taxes does NOT relate to self-employment?

    <p>Corporate activity tax</p> Signup and view all the answers

    How can a taxpayer subscribe to receive emailed information regarding tax updates?

    <p>Through a link on the Tax professionals webpage</p> Signup and view all the answers

    Study Notes

    Oregon Tax Resources

    Oregon Income Tax Guide

    • General Information:
      • Oregon Income Tax Filing Requirements: This booklet provides information on Oregon income tax filing requirements for individuals, including:
        • Determining if you need to file an Oregon income tax return.
        • Electronic and 2-D barcode filing options for Oregon tax returns.
        • Understanding the importance of having a federal return for Oregon tax purposes.
        • Record-keeping guidelines and requirements.
        • Information on filing an Oregon return, including residency, extensions of time to file, and form selection.
        • Filing status options, including information on registered domestic partners (RDPs).
        • Relevant information for military personnel filing taxes in Oregon.
      • Tax Rates and Credits:
        • Summary of Oregon personal income tax rates, including qualified business income, farm liquidation, and farm income averaging provisions.
        • Information on the pass-through entity elective tax (PTE-E) and CPAR (Capitalized Pass-Through Allocation Ratio) tax.
        • Deductible interest on certain installment sales and ABLE account/Oregon 529 College Savings Network account tax recapture.
        • Overview of various individual taxes in Oregon.
        • Details regarding payment options, refunds, and direct deposit for Oregon taxes.
        • Information on amended returns and how to amend your Oregon return.
      • Interest and Penalties:
        • Explanation of interest rates and penalties related to Oregon income tax returns.
      • Audits and Appeals:
        • Guide on how to handle an audit of your Oregon income tax return.
        • Steps to follow when appealing an audit decision.
    • Income
      • Taxable Income:
        • Types of income subject to Oregon taxation.
        • Specific examples include air carrier employee income, alimony received, business income or loss, and discharge of indebtedness income.
        • Information on various federal income categories relevant to Oregon tax, including global intangible low-taxed income (GILTI), hydroelectric dam worker income, individual Retirement Account (IRA) distributions, interest and dividend income, interstate transportation wages (Amtrak Act), and like-kind exchange or involuntary conversion income.
        • Guidance on retirement income, Social Security and Railroad Retirement Board benefits, state and local income tax refunds, unemployment insurance (UI) benefits, and wages, salaries, and other pay for work.
        • Specific information on waterway worker income.
      • Adjustments and Additions:
        • Adjustments:
          • Alimony paid, certain business expenses of reservists, performing artists, and fee-basis government officials, educator expenses, health savings account (HSA) deductions, IRA or self-employed SEP and SIMPLE contributions, moving expenses, penalty on early withdrawal of savings, self-employed health insurance, self-employment tax, and student loan interest.
          • Other federal Form 1040 adjustments on Schedule 1 lines 23 and 25.
        • Additions:
          • ABLE account subtraction nonqualified withdrawal, accumulation distribution from certain domestic trusts, capital loss carryover difference, claim of right income repayments, college opportunity grant fund contributions, depletion in excess of property basis, disposition of inherited Oregon farmland or forestland, disqualified charitable donations, federal business income deduction, federal election on interest and dividends of a minor child, federal estate tax, federal income tax refunds, federal subsidies for employer prescription drug plans, first-time home buyer savings account nonqualified withdrawal, gambling losses claimed as an itemized deduction, income taxes paid to another state by a pass-through entity, individual development account (IDA) contributions, interest and dividends on government bonds of other states, lump-sum distribution from a qualified retirement plan, nonresident capital losses and loss carryovers, Oregon College and MFS 529 Savings Plan subtraction nonqualified withdrawal, Oregon Production Investment Fund contributions, passive foreign investment company income, PTE-E tax deducted on entity-level federal return, refund of Oregon-only itemized deductions from a prior year, University Venture Development Fund contributions, and unused business credits.
        • Subtractions:
          • ABLE account deposit carryforward, American Indian subsidies, AmeriCorps educational awards, artist's charitable contributions, Capital Construction Fund (CCF) contributions, casualty loss from state-declared emergency, construction worker and logger commuting expenses, domestic international sales corporation (DISC) dividend payments, federal gain previously taxed by Oregon, federal income tax liability, federal mortgage interest credit, federal pension income, federal tax credits, film production labor rebate, first-time home buyer savings account (FTHBSA) contributions and earnings, foreign income tax, IDA contributions, income on a composite return, interest and dividends on U.S. Savings Bonds, Oregon College and MFS 529 Savings Plan distributions, Oregon Kids Credit, Oregon Production Investment Fund contributions, rural emergency medical service provider income, rural health practitioner income, WFHDC medical expenses, and federal tax liability subtraction.
    • Deductions and Modifications:
      • Deductions:
        • Casualty losses, charitable contributions, depreciation, expenses, medical expenses, property taxes, and other Oregon itemized deductions.
        • Home mortgage interest, taxes, insurance, and other deductions related to real estate.
      • Modifications:
        • Gain on the sale of an Oregon residence, fiduciary adjustment from Oregon estates and trusts, passive activity losses (PALs), suspended losses, Oregon percentage, and Oregon deferral of reinvested capital gains.
    • Credits:
      • Types of Credits:
        • Standard credits, exemption credit, income taxes paid to another state on mutually-taxed income, and mutually-taxed gain on the sale of residential property.
        • Other credits including Oregon Cultural Trust contributions, Oregon Veterans' Home physicians, political contributions, reservation enterprise zone credit, retirement income credit, rural emergency medical service provider credit, and rural health practitioner credit.
      • Credit-Related Information:
        • Information on the "kicker" surplus credit and how to claim it on your Oregon tax return.
        • Options for donating your kicker credit to the Oregon State School Fund.
        • Details regarding the new refundable Oregon Kids Credit for eligible taxpayers with qualifying children.
        • Reminder about Paid Leave Oregon benefits and potential adjustments to your return.
    • Record Keeping:
      • Guidelines:
        • Emphasize the importance of keeping detailed and organized records for all income and expenses.
        • Examples of records to keep include checking and savings account statements, canceled checks, divorce or separation agreements, proof of purchase, purchase expenses, property improvement costs, basis adjustments, donor's adjusted basis for gifts, year-end interest statements, and documentation for sales of capital assets.
      • Record Retention Duration:
        • General recommendation to keep tax-related records for at least three years from the filing date or two years from the date the tax was paid, whichever is later.
        • Specific situations requiring longer record retention, such as keeping property records for at least four years after the property is sold or disposed of.
        • Explanation of the statute of limitations on tax returns and its impact on record retention.
    • New Information:
      • Pass-Through Entity Elective Tax Extension: The PTE-E tax has been extended to apply through tax years beginning before January 1, 2026. Additionally, a new subtraction is available on the personal income tax return for refunds of the elective tax included as income on your federal return.
      • Forest Conservation Credit: Small forestland owners can claim a new tax credit for the creation of a forest conservation area.
      • Federal Tax Liability Subtraction Limit: The federal tax liability limit is 7,800(7,800 (7,800(3,900 if married filing separately) for 2023. This limit may be further restricted based on your adjusted gross income (AGI).
    • Revenue Online:
      • Revenue Online provides secure online access to Oregon tax account management tools.

    Filing Extensions

    • You qualify for an automatic extension to file your Oregon tax return if you’re in the military and stationed in a designated combat zone.
    • You may qualify for additional time to file if your home or business was in a presidentially declared disaster area and you received an extension for your federal return

    Filing Status

    • Married couples with different residency statuses can file a joint Oregon return using the married filing jointly status, or each file separate returns using the married filing separately status.
    • They cannot file as head of household.
    • This exception does not apply to unmarried RDPs or married taxpayers without permanent resident status.

    Nonresidents

    • Nonresidents who receive income from Oregon sources must pay Oregon income tax.
    • A nonresident trust must file an Oregon return using Form OR-41.
    • If you’re a nonresident selling real property in Oregon, the escrow agent may withhold part of the sale proceeds.
    • Withholding is the lesser of 4% of the consideration, the net proceeds, or 8% of the gains.

    PTEs with Nonresident Owners

    • You must withhold taxes on a nonresident owner's income if they elect not to be included on the corporation's composite tax return.
    • All PTEs must file Form OR-OC with Oregon for each nonresident owner who elects to be included on the return.

    Forms

    • Multiple-member LLCs taxed as partnerships file Form OR-65.
    • LLCs who choose to be taxed as corporations file Form OR-20.
    • Single-member LLCs taxed as sole proprietorships file Schedule C, E, or F with their Oregon return.
    • S corporations file Form OR-20-S.

    Withholding on Real Property Sales

    • Escrow agents must withhold taxes on nonresident sales of Oregon real property.
    • Use Form OR-18-WC to report the tax payment.

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    Related Documents

    Oregon Individual Income Tax Guide 2023 PDF

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