Schedule OR-FCG-20 Instructions                                              2023
                              Farm Liquidation Long-term Capital Gain Tax Adjustment

This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) and Oregon Administrative 
Rules (OAR). For more information, refer to the laws and rules at www.oregon.gov/dor.

                                                              Farming activities include:
Lines 4 and 8 (Oregon tax computation)
                                                              •  Raising, harvesting, and selling crops.
Corporations compute tax using a rate as shown in the         •  Feeding, breeding, managing, or selling livestock, poul-
instructions for Form OR-20 and OR-20-S.                      try,  fur-bearing  animals,  or  honeybees,  or  the  produce 
                                                              thereof.
Use with Forms OR-20, OR-20-S, and OR-65 to reduce your       •  Dairying and selling dairy products.
tax on the qualified gain. Complete the worksheet, check      •  Stabling or training of horses, including providing riding 
the box on the front of Form OR-20 or OR-20-S, and include    lessons, training clinics, and schooling shows.
it with your return. You do not need to complete the form     •  Propagating, cultivating, maintaining, or harvesting 
if your net long-term capital gain is zero or you have a net  aquatic species, birds, and other animals.
long-term capital loss, or if you don’t have taxable Oregon   •  Any other agricultural, horticultural, or animal hus-
income.                                                       bandry activity.
                                                              •  On-site construction and maintenance of equipment and 
A reduced tax rate is available if you sold or exchanged cap- facilities used in farming activities.
ital assets used in farming. The sale or exchange must rep-   •  Preparation, storage, or disposal of products or by-prod-
resent a substantially complete termination of your farming   ucts raised for human or animal use on land employed 
business or a termination of all your ownership interest in   in farming activities.
property that’s used in a farming business.                   •  Growing and harvesting cultured Christmas trees or cer-
                                                              tain hardwood timber.
You may not claim the special tax rate on a sale or exchange 
to a subsidiary/affiliate in the unitary group, as defined    Farming activities don’t include growing and harvesting 
under  Internal Revenue  Code  section  267(b). Ownership     trees of a marketable species other than growing and har-
of a farm dwelling or farm homesite isn’t considered to be    vesting cultured Christmas trees or certain hardwood tim-
ownership of property employed in the trade or business       ber. [ORS 317.063(a)(H)].
of farming.
Partnerships or S corporations. The sale of ownership         Do you have questions or need help?
interest in a farming corporation, partnership, or other 
entity qualifies for the special tax rate. The taxpayer must    www.oregon.gov/dor
                                                              503-378-4988 or 800-356-4222
have had at least a 10 percent ownership interest in the 
                                                              questions.dor@dor. oregon.gov
entity before the sale or exchange. If the income is taxed at 
the personal level, use Worksheet OR-FCG to calculate the     Contact us for ADA accommodations or assistance in other 
special tax rate.                                             languages.

150-102-167-1 (Rev. 10-05-23)                                                             2023 Schedule OR-FCG-20 Instructions