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Example 6: Maggie filed her original return on March 12, an S corporation, or Pfor a partnership. Don’t enter LLC or
2023, and didn’t elect the reduced tax rate or file an exten- anything other than the codes listed.
sion. She files an amended return on May 4, 2023, and elects
Column (a):
the reduced tax rate. The reduced tax rate will be denied Enter Oregon-source nonpassive losses attribut-
since the amended return was filed after the original due able to the qualifying sole proprietorship, partnership, or S
date of April 18, 2023, and she didn’t file an extension. corporation. Include qualifying nonpassive losses such as
IRC Section 1231 losses treated as ordinary losses.
Example 7: Sam filed his original return on a timely filed
extension on May 12, 2023, and elects the reduced tax rate. Column (b): For partnerships and S corporations only.
The reduced tax rate election will be allowed because it was Enter Oregon-source Section 179 expense deduction you
made on his original return. reported in Part II, Section 28, column (i) of your federal
Schedule E attributable to the qualifying partnership
Example 8: Allen filed his original return on a timely filed
or S corporation. Don’t complete this column for sole
extension on May 3, 2023, and didn’t elect the reduced tax
proprietorships.
rate. He files an amended return on July 1, 2023 and makes
the election. His amended return will be accepted allowing Column (c): Enter Oregon-source nonpassive income attrib-
the reduced tax rate and his amended return will be treated utable to the qualifying sole proprietorship, partnership, or
as the original return for the reduced tax rate election. S corporation. Include qualifying nonpassive income such
If you claimed the reduced tax rate on your original return, as royalties and IRC Section 1231 gains treated as ordinary
you must amend Schedule OR-PTE-NR if: income. Don’t include passive income, capital gains, interest
income, wages, or dividends.
• An IRS audit (or other state audit) resulted in a change that
affects your Oregon return; Column (d). If you are not a member of an entity that elected
• You amended your federal (or other state) return and the to pay PTE-E, enter 0. Otherwise, if all of the ordinary busi-
changes you made affect your Oregon return; ness income passed through from the entity qualifies for this
• You have a net operating loss (NOL); or reduced tax rate, enter the amount from Schedule OR-K-1,
• You need to correct income or deductions you originally line 2. However, if not all of the ordinary business income
reported. passed through from the entity qualifies for this reduced
Note: If you amend after the due date for the return of April tax rate, use the federal Schedule K-1 (or Oregon Schedule
18, 2023 (or October 17, 2023, if filing on extension), you must OR-K-1) and Oregon Schedule OR-21-K-1 issued by the elect-
use the tax on line 12a of the Tax worksheet even if line 13a ing entity and this formula to determine the amount to enter
is less. on column (d):
Qualifying business income from electing entity
Schedule instructions ÷
Ordinary business income from Schedule K-1, box 1
Use the following instructions to complete Schedule OR- ×
PTE-NR. Complete the entire schedule and include it with Addition from Schedule OR-21-K-1, line 2
your Oregon Form OR-40-N. =
Amount to claim on column (d)
Section A instructions
See Form OR-21 Instructions and our website for information
Complete a line for each qualifying sole proprietorship, part- about the PTE-E tax.
nership, or S corporation. Only list businesses that qualify.
Use additional schedules if necessary and put the total from Line 6: Report the totals for columns (a), (b), and (c). If more
all schedules on line 6 of the first page. than one page is used, report the total of all pages on the
first page.
Note: You must list all nonpassive income (or loss) from qual-
ifying sole proprietorships, partnerships, and S corporations Line 9: If line 9 is 0 or less, you can’t use the reduced tax
for each individual making the election. You can’t selectively rate. Return to line 46 and complete the rest of Form OR-
choose which qualifying income (or losses) to report. 40-N. If line 9 is more than 0, enter the amount on line 2b
of Section B.
For each qualifying business, enter the business name, fed-
eral employer identification number (FEIN), number of quali-
fying employees, business code number, and entity type. Section B instructions
Business code number. Enter the business code number The tax worksheet in Section B will help you calculate which
(or North American Industry Classification System code) as tax rate is more beneficial to you. Complete each line to
reported on line c of federal Form 1065, line b of federal Form determine your tax.
1120S, or line b of federal Schedules C or F. Lines 4 and 7: Report only the depreciation modification
Entity type. Enter the appropriate code for how the business attributable to the qualifying sole proprietorships, partner-
files for tax purposes: SP for a sole proprietorship, SC for ships, or S corporation listed in Section A.
150-101-367-1 (Rev. 08-30-22) 3 2022 Schedule OR-PTE-NR Instructions
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