Schedule OR-DEPR Instructions
                               Oregon Depreciation Schedule Instructions                                         2022

                                                                 her Schedule OR-ASC-NP using code 152. Since there’s no 
General information                                              Oregon addition, she enters 0 in the Oregon column. Annie 
Use Schedule OR-DEPR to calculate depreciation for:              enters $500 in the Oregon column of section C of Schedule 
                                                                 OR-ASC-NP using subtraction code 354. Since there’s no 
• Assets first placed in service outside Oregon;                 federal subtraction, she will enter 0 in the federal column.
• Assets subject to apportionment; and 
• Assets placed in service during tax years when Oregon 
                                                                 Partnerships, corporations, and fiduciaries
  depreciation law was disconnected from federal law. 
                                                                 You may also use this form to figure the difference in depre-
Oregon is currently tied to federal law, but there are histori-
                                                                 ciation you report on these Oregon forms:
cal disconnects that might mean your Oregon depreciation 
needs to be calculated differently than federal depreciation.    • Form OR-65, Oregon Partnership Return of Income.
For each asset, figure both your federal and Oregon depre-       • Form OR-20, Oregon Corporation Excise Tax Return.
ciation deductions for the year using appropriate methods.       • Form OR-20-INC, Oregon Corporation Income Tax Return.
Enter the information in boxes a through i, using additional     • Form OR-20-S, Oregon S Corporation Tax Return.
forms as needed. In column f, abbreviate the depreciation        • Form OR-20-INS, Oregon Insurance Excise Tax Return.
method you used for that asset, such as “MACRS” for Modi-        • Form OR-41, Oregon Fiduciary Income Tax Return.
fied Accelerated Cost Recovery System, or “150% DB” for 
150 percent declining balance.                                   Assets placed in service on or after 
                                                                 January 1, 1981 and before January 1, 1985
Full-year resident individuals
                                                                 Oregon depreciation didn’t match federal depreciation for 
If you have an amount on line 6, enter it on Schedule            assets placed in service on or after January 1, 1981 and before 
OR-ASC, section A, using addition code 152.                      January 1, 1985. If you are still depreciating assets placed in 
If you have an amount on line 7, enter it on Schedule OR-        service during this period, contact the department to deter-
ASC, section B, using subtraction code 354.                      mine your correct reporting.

Part-year resident and nonresident individuals                   Assets placed in service on or after 
You will need to complete two of these schedules to deter-       January 1, 1985 and before January 1, 1987
mine both the federal and Oregon amounts to report on            Oregon adopted the federal Accelerated Cost Recovery 
Schedule OR-ASC-NP.                                              System (ACRS) method of depreciation for assets placed 
• Federal amount:              Complete one Schedule OR-DEPR for in service during these two years. There is no depreciation 
  all assets both inside and outside Oregon (as if you were      difference for these assets.
  a full-year Oregon resident).
• Oregon amount:               Complete another Schedule OR-DEPR Assets placed in service on or after 
  only for property you owned while an Oregon resident,          January 1, 1987
  or property used to produce Oregon income.
                                                                 MACRS is effective for assets placed in service on or after 
If you have an amount on line 6, enter it on Schedule 
                                                                 January 1, 1987 (see exception below for assets placed in 
OR-ASC-NP, section B, using addition code 152.
                                                                 service during 2009 and 2010). The method and life will 
If you have an amount on line 7, enter it on Schedule            be the same as you used on the federal return. If you elect 
OR-ASC-NP, section C, using subtraction code 354.                to expense the cost of qualifying assets under IRC Section 
For the schedule you completed for the federal amount,           179, the election and amount is also effective for Oregon 
enter the amount in the federal column of Schedule               purposes.
OR-ASC-NP. For the schedule you completed for the Oregon         Credits that reduce only your federal basis will cause a dif-
amount, enter the amount in the Oregon column of Sched-          ference in depreciation for Oregon. This will be the only 
ule OR-ASC-NP. Enter 0 in any columns that don’t have an         cause for a difference in depreciation for corporations.
adjustment.
Example 1. Annie is a nonresident, so she completed Sched-       Exception: Assets placed in service on or after 
ule OR-DEPR for her federal amount using all assets and has      January 1, 2009 and before January 1, 2011
$2,000 on line 6. She completed a second Schedule OR-DEPR 
for her Oregon amount using only Oregon source assets and        Oregon didn’t adopt changes made to IRC Section 168(k) 
has $500 on line 7. Annie has a federal column addition of       (bonus depreciation) or to any expensing limits under IRC 
$2,000 she will enter in the federal column of section B of      Section 179 for this period.
150-101-025-1 (Rev. 08-16-22)                                                                                      Page 1 of 2

Assets first placed in service outside of Oregon                recovery period of 20 years and he began depreciating the 
                                                                truck based on its original recovery period of five years.
Did you bring an asset into Oregon after it was first placed in 
service outside of Oregon? If so, use a depreciation method 
                                                                Assets subject to apportionment
available for the year the asset was first placed in service 
outside of Oregon.                                              The basis of an asset subject to apportionment rules when 
                                                                brought into Oregon is figured as if it had always been sub-
The Oregon basis for depreciation is generally the lower 
                                                                ject to Oregon tax. The original unadjusted basis is reduced 
of the federal unadjusted basis or the fair market value. 
                                                                by depreciation allowable in previous years, using a method 
The federal unadjusted basis is the original cost before any 
                                                                acceptable to Oregon for the year the asset is placed in ser-
adjustments. Adjustments include: reductions for investment 
                                                                vice. This adjusted basis is depreciated over the remaining 
tax credits, depletion, amortization, or amounts expensed 
                                                                useful life using the same allowable method.
under IRC Section 179. The fair market value is figured when 
the asset is brought into Oregon.                               Example 3. A California partnership started operation 
                                                                by purchasing a Los Angeles building on July 1, 2003 for 
Did you first place assets in service outside of Oregon before 
                                                                $950,000. For federal purposes, the partnership depreci-
January 1, 1981? If so, your Oregon basis will be the same as 
                                                                ated the building under MACRS as 20-year property. The 
your federal basis.
                                                                partnership began doing business in Oregon on July 1, 2005. 
For assets placed in service outside of Oregon before 1985,     Since the partnership is subject to the apportionment rules, 
the useful life is based on Oregon law in effect at the time    the basis of the building for Oregon is as if the building was 
the asset was originally placed in service and is determined    depreciated for Oregon using MACRS 20-year (straight-line 
when the asset is brought into Oregon. For assets placed        method) from the date of purchase.
in service outside of Oregon after 1984, the useful life is 
                                                                Cost ............................................................................$950,000
determined when the asset is placed in service for Oregon 
                                                                2003 depreciation .....................................(23,750)
tax purposes.
                                                                2004 depreciation ..................................... (47,500)
Example 2. Jeff has owned a business in Caldwell, Idaho         2005 depreciation through June 30 ........(23,750)  (95,000)
since 2006 when he placed in service a building purchased 
                                                                Oregon basis as of July 1, 2005 ...............................$855,000
for $250,000. The building qualified for MACRS depreciation 
as 20-year real property. On June 1, 2019, Jeff bought a light  For Oregon purposes, the building is depreciated using an 
truck for $45,000. The truck qualified as five-year property    Oregon basis of $855,000 and is depreciated over the remain-
depreciated under MACRS. On January 1, 2022, Jeff moved         ing useful life (18 years) using the same allowable method.
to Ontario, Oregon. Since Jeff brought his business assets 
into Oregon, he had to figure his Oregon basis in order to      Additional resources
depreciate the assets for Oregon.
                                                                Download Oregon tax forms and instructions at 
                                   Building    Truck              www.oregon.gov/dor/forms or contact us to order them.
Cost (federal unadjusted basis)    $250,000   $45,000
Fair market value (as of 01/01/22) $495,000   $32,000           Do you have questions or need help?
The Oregon basis of the building is $250,000.                     www.oregon.gov/dor
                                                                503-378-4988 or 800-356-4222
The Oregon basis of the truck is $32,000. Oregon adopted 
                                                                questions.dor@ dor.oregon.gov
MACRS for assets first placed in service after December 
31, 1986, so Jeff used MACRS for Oregon purposes as well.       Contact us for ADA accommodations or assistance in other 
He began depreciating the building based on its original        languages.

150-101-025-1 (Rev. 08-16-22)                                                                                                   Page 2 of 2