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Oregon Estimated Tax Requirements

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Level 15

I've researched it at the OR Dept of Rev.....but have a wee bit of uncertainty.

CAN you base the current year estimates on 100/110% of the prior year?

The scenario is that I have a client with zero prior year Oregon liability (non- resident return) yet for 2018 his liability will be very large due to a $ 1.3 million capital gain.  

My uncertainty arises because CA has this little *gotcha* whereby, if the income is over $ 1 million, you can't use the prior year as a safe harbor.  

I just need a little hand-holding to make sure Oregon doesn't have the same gotcha & I haven't found it yet.  (I have a bad cold...and my head hurts...and I can't think clearly....)

TIA - I'm hoping one of you knows off the top o' your head; don't do any research :smile:

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Level 15

Based on my vast experience of never doing an Oregon return, I'm thinking you might not be safe with the zero based on the instructions to the underestimate penalty form since you are dealing with a nonresident.

Exception 2—Prior year.

You meet this exception if all of the following are true:

  1. You were a full-year Oregon resident in 2017; and
  2. Your net income tax for 2017 was -0- or you weren’t required to file a return for 2017; and
  3. Your tax year was a full 12 months.

Wear a mask - the grandma you save could be your own.

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Highlighted
Level 15

Based on my vast experience of never doing an Oregon return, I'm thinking you might not be safe with the zero based on the instructions to the underestimate penalty form since you are dealing with a nonresident.

Exception 2—Prior year.

You meet this exception if all of the following are true:

  1. You were a full-year Oregon resident in 2017; and
  2. Your net income tax for 2017 was -0- or you weren’t required to file a return for 2017; and
  3. Your tax year was a full 12 months.

Wear a mask - the grandma you save could be your own.

View solution in original post

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Level 15
Such a big word... "ALL".  
Thanks - I'm going home to bed now.
If a post answers your question, click on "Accept as solution" for future searches
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Level 15
:+1::+1:
Wear a mask - the grandma you save could be your own.
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