OR-21-MD-PT: Schedule OR-21-MD-PT Instructions, Pass Through of Distributive Share of Proceeds, Addition, and Credit (2024)
Oregon · Oregon DOR · Used for tax years 2024
These instructions explain how to complete 2024 Oregon Schedule OR-21-MD-PT. Upper-tier pass-through entities use the schedule to report proceeds, an addition for tax deducted at the federal level, and a credit for PTE elective tax paid that pass through from an electing lower-ti
Who files this form
Upper-tier pass-through entities (PTEs) that are members of lower-tier entities electing to pay Oregon’s PTE elective tax (PTE-E tax) use Schedule OR-21-MD-PT to report items passed through to their members.
The upper-tier PTE must include this schedule with Form OR-21. Complete a separate schedule for each electing lower-tier entity in which the upper-tier PTE is a member.
The addition and credit received from the lower-tier entity cannot be claimed on an entity-level return. They must be passed through to the upper-tier PTE’s members.
What you'll need
Have these documents and details ready:
- Schedule OR-21-K-1 from each electing lower-tier entity, showing distributive proceeds on line 1, the addition on line 2, and the PTE-E tax credit on line 3.
- Each lower-tier entity’s organization type, legal name, federal employer identification number (FEIN), and current address.
- Each member’s name, current address, phone number, Social Security number (SSN), and ownership percentage.
- Each member’s share of the proceeds, addition, and credit, and whether a nonresident member elects to be included in a composite filing for the tax year.
- Form OR-21, with which the completed schedules and any additional pages must be included.
How to file
To complete your filing, go to Revenue Online at www.oregon.gov/dor.
- Prepare a separate Schedule OR-21-MD-PT for each electing lower-tier entity.
- In Part A, enter the lower-tier entity’s type, legal name, FEIN, and current address.
- In Part B, transfer amounts from Schedule OR-21-K-1: line 1 to schedule line 2, line 2 to schedule line 3, and line 3 to schedule line 4.
- In Part C, enter each member’s information and share of the proceeds, addition, and credit.
- Check that the member totals match the amounts in Part B.
- Include the completed schedules and any additional pages when filing Form OR-21.
You may use Worksheet OR-21-MD-PT to prepare the schedule, but do not file the worksheet.
Common mistakes
- Claiming the addition or credit at the entity level. These items must be passed through to the upper-tier PTE’s members.
- Leaving out schedules or additional pages. Include the completed schedules and all additional pages with Form OR-21.
- Using only an assumed business name. Enter the lower-tier entity’s legal name even if it does business under another name.
- Not checking member totals. Column l must total line 2, column m must total line 3, and column n must total line 4.
- Filing the worksheet. It is for informational purposes only. Its three total lines are for convenience and are not part of the schedule.
Questions people ask
Do I need a separate schedule for each lower-tier entity?
Yes. Complete a separate Schedule OR-21-MD-PT for each electing lower-tier entity in which the upper-tier PTE is a member. Use additional pages as needed.
Which entity-type box should I check for an LLC?
If the lower-tier LLC is treated as a partnership or an S corporation for tax purposes, check the applicable box.
Which ownership percentage should I report?
Report the member’s ownership percentage at the close of the tax year. If the member disposed of all or part of an ownership interest during the year, use the percentage before that disposition.
When should I mark the Form OR-OC box?
Mark it if the member is a nonresident who elects to be included in a composite filing for the tax year.
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 help in other languages.