Oregon Revised Statutes

Or. Rev. Stat. § 314.714 (2026)

Character of partnership income; procedure if partner’s treatment of item inconsistent with partnership treatment; rules

✓ current as of May 2026
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      314.714 Character of partnership income; procedure if partner’s treatment of item inconsistent with partnership treatment; rules. (1) Each item of partnership income, gain, loss or deduction has the same character for a partner as it has for federal income tax purposes. If an item is not characterized for federal income tax purposes, it has the same character for a partner as if realized directly from the source from which realized by the partnership or incurred in the same manner as incurred by the partnership.

      (2) A partner’s distributive share of an item of partnership income, gain, loss or deduction (or item thereof) shall be that partner’s distributive share of partnership income, gain, loss or deduction (or item thereof) for federal income tax purposes as determined under section 704 of the Internal Revenue Code and adjusted for the modifications, additions and subtractions provided in this chapter and ORS chapters 316, 317 and 318.

      (3) A partner shall, on the partner’s return, treat a partnership item in a manner that is consistent with the treatment of the partnership item on the partnership return, unless the partner notifies the Department of Revenue of the inconsistency. The department shall prescribe by rule the method for notification of an inconsistency. [1989 c.625 §30 (enacted in lieu of 316.347); 1993 c.726 §22; 1999 c.90 §6; 2019 c.132 §8]

Notes of Decisions
Cited in 6 cases, 1995–2018 · leading case: Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018).
Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018). · cites it 3× “The character of partnership items for a nonresident partner shall be determined under ORS 314.714(1).” The language of ORS 316.”
Pratt & Larsen Tile v. Dep't of Revenue, 13 Or. Tax 270 (Or. T.C. 1995). “ORS 314.714. Nevertheless, in transactions with others, the law allows a partnership to act as a legal entity separate from its partners.”
Reeve v. Dep't of Revenue, 37 P.3d 981 (Or. 2001). · cites it 6× “124(5), 7 the character of partnership items for a nonresident partner is determined by ORS 314.714(1), which provides: “Each item of partnership income, gain, loss or deduction has the same character for a partner as it has for federal income tax purposes.”
Wiley v. Dept. of Rev. (Or. T.C. 2017). “See ORS 314.714 (concerning items of partnership income, gain, loss, or deduction); ORS 314.”
Lamka v. Dept. of Rev. (Or. T.C. 2018). “See ORS 314.714(2); IRC § 704 (providing for distributing partnerships’ tax items among partners).”
Olejko v. Dep't of Revenue, 14 Or. Tax 232 (Or. T.C. 1997). “ORS 314.714. Of relevance here is ORS 314.”
— Or. Rev. Stat. § 314.714(1) — 2 cases
Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018). “The character of partnership items for a nonresident partner shall be determined under ORS 314.714(1).” The language of ORS 316.”
Reeve v. Dep't of Revenue, 37 P.3d 981 (Or. 2001). “124(5), 7 the character of partnership items for a nonresident partner is determined by ORS 314.714(1), which provides: “Each item of partnership income, gain, loss or deduction has the same character for a partner as it has for federal income tax purposes.”
— Or. Rev. Stat. § 314.714(2) — 3 cases
Cook v. Dept. of Rev., 23 Or. Tax 107 (Or. T.C. 2018). “The character of partnership items for a nonresident partner shall be determined under ORS 314.714(1).” The language of ORS 316.”
Reeve v. Dep't of Revenue, 37 P.3d 981 (Or. 2001). “124(5), 7 the character of partnership items for a nonresident partner is determined by ORS 314.714(1), which provides: “Each item of partnership income, gain, loss or deduction has the same character for a partner as it has for federal income tax purposes.”
Lamka v. Dept. of Rev. (Or. T.C. 2018). “See ORS 314.714(2); IRC § 704 (providing for distributing partnerships’ tax items among partners).”
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