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Oregon modifications. Examples of modifications that relate Oregon-source distributive income to determine the amount
to the PTE’s income include adjustments for depreciation, upon which the owner’s estimated payments are based.
depletion, gain or loss difference on the sale of depreciable
property, and U.S. government interest. Modifications don’t Credits
include the federal tax subtraction, itemized deductions, or Credits normally allowed on owners’ tax returns, such as
the Oregon standard deduction. the credit for income taxes paid to another state, aren’t taken
Oregon marijuana or psilocybin business modification. into account in determining the income amount upon which
Oregon-licensed marijuana and psilocybin businesses are owner payments are based and remitted.
allowed a deduction for expenses that could be claimed
as federal deductions if marijuana or psilocybin weren’t
Form instructions
controlled substances under federal law (IRC 280E). To cal-
culate the deduction, fill out a federal business return as if PTE information. Enter the PTE’s name, FEIN, and address.
the business expenses would have been allowed for federal
purposes. Don’t submit the federal business return to the Contact information. Enter the name, phone, and email of a
IRS. The deduction is the difference between the profit/ person the department can contact if we have questions or
loss on your actual federal return and the “as if” return. need more information.
Note: This deduction can’t be used to create a net operating Section 1. Mark the box that matches the PTE’s entity type:
loss. It can only reduce your Oregon source income to zero. Partnership, S corporation, LLC, LLP, LP, or Trust. Enter the
Don’t submit the “as-if” return with Form OR-19. Keep total amount of owner payments made each period and the
it with your tax records. See Publication OR-17 for more date the payments were made. If more than four payments
information. were made during the year, combine the last payments into
Non-Oregon-source income. Oregon-source distributive Payment 4.
income doesn’t include return of capital, income sourced in Section 2–Owner information. Each line should list only
one taxpayer, so
another state, or other distributions not taxable by Oregon. list spouses separately. Enter the name,
tax identification number, and address for each owner for
Oregon-only income
whom tax was withheld.
If the PTE has business activity only in Oregon, multiply the
Owner type. Indicate how the owner will file. Select from
distributive income of the PTE by the ownership percentage
Individual, Corporation, Trust/Estate, or Composite. Don’t
of the owner.
enter Grantor Trust, Disregarded Entity, or LLC.
Apportionable income Important:
PTEs with business activity both inside and outside Oregon • Owners won’t receive credit for payments made on their
during the year must calculate Oregon-source distributive behalf until the PTE has submitted Form OR-19.
income for its owners. Use Schedule OR-AP for this purpose.
Complete Part 1 of the schedule to figure the apportionment • Don’t include owners that are exempt, have no Oregon
percentage. Multiply the PTE’s distributive income by the tax liability or withholding, are joining a composite
apportionment percentage, then multiply by the ownership return, or filed an affidavit.
percentage of the owner. • Use the individual or corporate owner’s information for
disregarded entities.
Guaranteed payments
Guaranteed payments are treated as a business income • Use Form OR-19 only when submitting the annual rec-
component of the PTE’s distributive income and attributed onciliation. Do not submit this form with each period
directly to the owner receiving the payment. See Oregon payment.
Administrative Rule (OAR) 150-316-0155. • Incomplete forms or forms submitted in the incorrect
format won’t be processed.
Deductions
• Make sure the owner’s name on Form OR-19 matches the
Individual tax deductions name that will be on their income tax return.
Deductions normally allowed to individuals (itemized Section 2–Payment information. Enter the date and amount
deductions or the standard deduction) aren’t allowed in of each payment submitted during the tax year. Use whole
determining the income amount upon which owner pay- dollars for all amounts. If there were more than four pay-
ments are based and remitted.
ments, combine the last payments under Payment 4.
Self-employment tax deduction
Make additional copies of Section 2 as needed to divide all
Each PTE must calculate the self-employment tax deduction payments among all owners. If more than one copy is used,
for each electing member that is subject to self-employment enter the total for all payments on the last page of Part 2. The
tax. The self-employment tax deduction that is attributable to total payments must match the payments as listed in Section
the Oregon-source distributive income is subtracted from the 1. Indicate the number of pages at the bottom of the form.
150-101-182-1 (Rev. 08-23-22) 2 2022 Form OR-19 Instructions
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