Credit for Taxes Paid to Another State When Paid by a Pass-Through Entity

# (1)

(1) An individual who owns an interest in a pass-through entity may claim a credit for tax paid to another state by the entity if:

(a) The individual is an Oregon resident;

(b) The portion of the tax for which credit is claimed is computed upon the proportionate share of the entity's income which is taxable to the individual under ORS 316.048; and

(c) An addition is made on the individual's Oregon return for the individual's share of any tax paid or accrued, that relates to the credit taken, and that is deducted on the entity's or individual's federal income tax return in determining federal taxable income.

# (2)

(2) The individual must attach a statement to the Oregon return on which the credit is claimed showing:

(a) The amount(s) of mutually taxed income, tax paid, and credit claimed for each state; and

(b) The tax year(s) the taxes were due and the date(s) the entity paid the taxes for those states.

# (3)

(3) The individual must compute the amount of the credit under the provisions of OAR 150-316-0084.

# (4)

(4) "Pass-through entity" means a corporation, partnership, or limited liability company that is characterized for Oregon excise and income tax purposes as an S corporation or as a partnership.