Schedule OR-DEPR Instructions
                               Oregon Depreciation Schedule Instructions                                       2023

                                                               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. 08-29-23)                         Page 1 of 2                          2023 Schedule OR-DEPR Instructions 

Assets first placed in service outside of Oregon                Assets subject to apportionment
Did you bring an asset into Oregon after it was first placed in The basis of an asset subject to apportionment rules when 
service outside of Oregon? If so, use a depreciation method     brought into Oregon is figured as if it had always been sub-
available for the year the asset was first placed in service    ject to Oregon tax. The original unadjusted basis is reduced 
outside of Oregon.                                              by depreciation allowable in previous years, using a method 
                                                                acceptable to Oregon for the year the asset is placed in ser-
The Oregon basis for depreciation is generally the lower of 
                                                                vice. This adjusted basis is depreciated over the remaining 
the federal unadjusted basis or the fair market value (FMV). 
                                                                useful life using the same allowable method.
The federal unadjusted basis is the original cost before any 
adjustments. Adjustments include: reductions for investment     Example 3. A California partnership started operation 
tax credits, depletion, amortization, or amounts expensed       by purchasing a Los Angeles building on July 1, 2020 for 
under IRC Section 179. The FMV is figured when the asset        $950,000. For federal purposes, the partnership depreci-
is brought into Oregon.                                         ated the building under MACRS as 20-year property. The 
                                                                partnership began doing business in Oregon on July 1, 2022. 
In general, the useful life of an asset is determined when the 
                                                                Since the partnership is subject to the apportionment rules, 
asset is placed in service for Oregon tax purposes.
                                                                the basis of the building for Oregon is as if the building was 
Example 2. Jeff has owned a business in Caldwell, Idaho         depreciated for Oregon using MACRS 20-year (straight-line 
since 2016 when he placed in service a building purchased       method) from the date of purchase.
for $400,000. The building qualified for MACRS depreciation 
                                                                Cost ............................................................................$950,000
as 20-year real property. On June 1, 2021, Jeff bought a light 
                                                                2020 depreciation .....................................(23,750)
truck for $45,000. The truck qualified as five-year property 
                                                                2021 depreciation ..................................... (47,500)
depreciated under MACRS. On January 1, 2023, Jeff moved 
                                                                2022 depreciation through June 30 ........(23,750)  (95,000)
to Ontario, Oregon. At that time, the building’s FMV was 
$600,000 and the truck’s FMV was $32,000.                       Oregon basis as of July 1, 2022 ...............................$855,000
Since Jeff brought his business assets into Oregon, he had      For Oregon purposes, the building is depreciated using an 
to figure his Oregon basis in order to depreciate the assets    Oregon basis of $855,000 and is depreciated over the remain-
for Oregon.                                                     ing useful life (18 years) using the same allowable method.
                                   Building         Truck
                                                                Additional resources
Cost (federal unadjusted basis)    $400,000        $45,000
Fair market value (as of 01/01/23) $600,000        $32,000      Download Oregon tax forms and instructions at 
                                                                  www.oregon.gov/dor/forms or contact us to order them.
The Oregon basis of the building is $400,000.
The Oregon basis of the truck is $32,000. MACRS was avail-      Do you have questions or need help?
able as a depreciation method in Oregon in 2016 and 2021,         www.oregon.gov/dor
so Jeff used MACRS for Oregon purposes as well. He began        503-378-4988 or 800-356-4222
depreciating the building based on its original recovery        questions.dor@ dor.oregon.gov
period of 20 years and he began depreciating the truck based 
on its original recovery period of five years.                  Contact us for ADA accommodations or assistance in other 
                                                                languages.

150-101-025-1 (Rev. 08-29-23)                      Page 2 of 2                               2023 Schedule OR-DEPR Instructions