Or. Admin. R. 150-314-0480 - Publicly Traded Partnerships Taxed as Corporations

150-314-0480
Publicly Traded Partnerships Taxed as Corporations

(1) “Publicly traded partnership” means a partnership with interests traded on an established securities market or readily tradable on a secondary market (or its substantial equivalent), including master limited partnerships, under the provisions of IRC 7704. Oregon adopted the provisions of IRC 7704 retroactively.

(2) Publicly traded partnerships deriving less than 90 percent of their gross income from qualifying passive-type income sources are treated as corporations for federal and Oregon tax purposes. Examples of qualifying income sources include interest, dividends, real property rents, gain from the disposition of real property, mining and natural resource income, and gain from the disposition of capital assets or IRC 1231(b) property held for the production of such income.

(3) A publicly traded partnership that was not an existing partnership on December 17, 1987, shall be treated as a corporation for tax years beginning after December 31, 1987.

(4) A publicly traded partnership that was an existing partnership on December 17, 1987, shall be treated as a corporation for tax years beginning after December 31, 1997.