OR-21-AP: Schedule OR-21-AP Instructions, Oregon Pass-through Entity Elective Tax Apportionment of Income (2024)
Oregon · Oregon DOR · Used for tax years 2024
These instructions explain how to complete Oregon Schedule OR-21-AP for the 2024 pass-through entity elective tax. The schedule reports Oregon sales and total sales everywhere to calculate the apportionment percentage entered on Form OR-21. An informational worksheet is included
Who files this form
A pass-through entity (PTE) with business income taxable by Oregon and at least one other state must apportion its income. Include Schedule OR-21-AP when filing Form OR-21.
PTEs doing all of their business within Oregon do not need this schedule.
Financial institutions and public utilities must apportion income under the special provisions of ORS 314.280.
What you'll need
To prepare the schedule, have the following information available:
- Sales of tangible personal property, separated by shipping location, purchaser location, sales to the U.S. government, and whether the PTE is taxable in the purchaser’s state.
- Oregon sales from partnerships in which the PTE is a partner. Use Schedule OR-PI, line 3, as a guide.
- Other Oregon business receipts, including services delivered to Oregon and receipts from intangible property used or considered used in Oregon.
- Total sales everywhere during the tax year.
- For insurance companies only, direct premiums, annuity considerations, and finance and service charges.
Worksheet OR-21-AP can be used to prepare the schedule, but it must not be filed.
How to file
Complete Worksheet OR-21-AP to prepare to file the schedule. To complete your filing, go to Revenue Online at www.oregon.gov/dor.
- Add lines 1 through 9 to get total Oregon sales on line 10.
- Enter total sales everywhere on line 11.
- Divide line 10 by line 11. Round to four decimal places and enter the result as a percentage on line 12.
- Enter that percentage on Form OR-21, line 19.
Include Schedule OR-21-AP when you file Form OR-21. Do not file the worksheet.
Common mistakes
- Filing the worksheet: Worksheet OR-21-AP is for informational purposes only. Do not file it.
- Leaving out the schedule: Include Schedule OR-21-AP when filing Form OR-21.
- Completing insurance-only lines when they do not apply: Lines 7, 8, and 9 are for insurance companies only.
- Treating Schedule OR-PI as a required attachment to Form OR-21: Use it as a guide for partnership sales, but it is not required to be filed with Form OR-21.
Questions people ask
How is the sales factor calculated?
Divide the PTE’s total Oregon sales by its total sales everywhere during the tax year. For the PTE-E tax, all apportionable income must be apportioned using the sales factor.
What makes up Oregon income?
Oregon income is the sum of the PTE’s Oregon apportioned income and income allocated to Oregon.
Can a PTE be taxable in another state even if that state does not actually impose an income tax on it?
Yes. A PTE is taxable in another state if that state has jurisdiction to subject it to a tax imposed on or measured by net income, even if the state does not actually impose that tax on the PTE.
Where can I get help?
Visit www.oregon.gov/dor, call 503-378-4988 or 800-356-4222, or email questions.dor@dor.oregon.gov. You can also contact the department for ADA accommodations or assistance in other languages.