- 1 -
|
Schedule OR-TSE-AP Instructions
Oregon Transit Self-Employment 2023
Tax Apportionment
This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR).
For possible updates and more information, visit www.oregon.gov/dor/business.
Exception: Use Schedule AP-2 if you’re an electing utility or
Purpose of Schedule OR-TSE-AP telecommunications taxpayer.
Schedule OR-TSE-AP is used for all self-employed indi- Remember: If you meet the exception and elect this option,
viduals that are doing business both in and out of the transit please check the box "Utility or telecommunications" on the
district. Use this schedule with Forms OR-TM and OR-LTD. front of Form OR-TM or Form OR-LTD.
Each individual carrying on business both inside and outside The election is for taxpayers primarily engaged in utilities
the district must complete this form and include it when and telecommunications to apportion income using the
filing their return. double-weighted sales factor formula provided in ORS
314.650 (1999 edition). This election may be revoked later.
Apportionment and allocation
Apportionment is dividing apportionable income inside Apportionment factors
and outside the district by use of a formula. Allocation is 1. Property factor
the assignment of specific nonapportionable income to the
district. Most individuals with self-employment income and Business property within the district is entered on line 1a.
business activities both inside and outside the district must All owned or rented business property should be entered
use the apportionment and allocation methods provided on line 1b.
in the Uniform Division of Income for Tax Purposes Act • Owned property is valued at original cost. Show the
(UDITPA)(ORS 314.605 through 314.675 and supporting average value during the taxable year of real and tan-
administrative rules). gible personal property used in the business. This is the
Rounding to whole dollars. Enter amounts as whole dol- average of property values at the beginning and the end
lars only. Example: $4,681.55 becomes $4,682; and $8,775.22 of the tax period. An average of the monthly values may
becomes $8,775. be required if a more reasonable value results.
• Rented property is valued at eight times the annual
Rounding percentages. When computing the property,
rent you pay. The annual rent paid must be reduced by
payroll, and sales factor percentages, round the percentage
nonbusiness subrentals.
to four decimal places. For example, 12.34558 percent should
be 12.3456 percent. 2. Payroll factor
Compensation to employees for services performed must
be included in the payroll factor. Payroll is assigned to the
Partnership apportionment
district if:
If a partnership elects to file and pay the transit self-employ- • The services are performed entirely inside the district;
ment tax for all of its participating individual partners, the or
partnership must use net earnings from self-employment • The services are performed both in and out of the district,
as reported on federal Form 1065 to figure the tax. The ap-
but those services performed outside are only incidental;
portionment is based on the partnership as a whole, not the
or
individual partner.
• Some of the services are performed in the district and, (a)
Example: Self-employment earnings from partnership the base of operation or control is located in the district
or, (b) the base of operation or control isn’t in the district
Form 1065 ..............................................................$ 2,000,000
or in any district where the employee’s services are per-
Sales within transit district .................................$ 35,000
formed, but the employee’s residence is in the district.
Total partnership sales .........................................$ 3,000,000
Transit apportionment ......................................... .011667 3. Sales factor
Net self-employment earnings ...........................$ 23,334
The sales factor is the percentage that sales or other self-
Complete Schedule OR-TSE-AP, Schedules AP-1 or AP-2, to employment gross receipts within the district compare to
determine the apportionment percent. Most taxpayers will sales or other self-employment gross receipts everywhere
use Schedule AP-1, unless you meet the exception below. for the taxable year.
150-500-051-1 (Rev. 10-16-23) 1 2023 Schedule OR-TSE-AP Instructions
|