Oregon Statutes 316.118 – Pro rata share of S corporation income of nonresident shareholder
(1) The pro rata share of S corporation income of a nonresident shareholder constitutes income or loss derived from or connected with sources in this state as provided in ORS § 316.127 (5).
Terms Used In Oregon Statutes 316.118
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the Department of Revenue. See Oregon Statutes 316.022
- nonresident: means an individual who is not a resident of this state. See Oregon Statutes 316.022
- Taxable income: means the taxable income as defined in subsection (a) or (b), section 63 of the Internal Revenue Code, with such additions, subtractions and adjustments as are prescribed by this chapter. See Oregon Statutes 316.022
(2) In determining the pro rata share of S corporation income of a nonresident shareholder, there shall be included only that part derived from or connected with sources in this state of the shareholder’s distributive share of items of S corporation income, gain, loss and deduction (or item thereof) entering into the federal adjusted gross income of the shareholder, as such part is determined under rules adopted by the Department of Revenue in accordance with the general rules under ORS § 316.127.
(3) Any modifications, additions or subtractions to federal taxable income described in this chapter that relates to an item of S corporation income, gain, loss or deduction (or item thereof) shall be made in accordance with the shareholder’s pro rata share, for federal income tax purposes of the item to which the modification, addition or subtraction relates, but limited to the portion of such item derived from or connected with sources in this state.
(4) A nonresident shareholder’s pro rata share of items of income, gain, loss or deduction (or item thereof) shall be determined under ORS § 314.763 (1). The character of shareholder items for a nonresident shareholder shall be determined under ORS § 314.763 (2). [1989 c.625 § 52; 1991 c.877 § 11]