OR-FCG: Worksheet OR-FCG, Farm Liquidation Long-Term Capital Gain Tax Rate (2025)
Oregon · Oregon DOR · Used for tax years 2025
Oregon Worksheet FCG calculates your Oregon tax using a 5 percent rate on qualifying net long-term capital gain from farm assets. It combines that tax with the tax on your remaining taxable income. Keep the worksheet with your tax records rather than including it with your return
Who files this form
Worksheet FCG is for taxpayers who qualify for the farm capital gain reduced tax rate. Complete it to calculate the Oregon tax on your net long-term capital gain from farm assets. Keep the worksheet with your records rather than filing it with your return.
You may qualify if you sold or exchanged capital assets used in farming and the transaction ended all your ownership interests in a farming business or in property used in a farming business.
- You do not qualify if you had a net loss from sales or exchanges of all types of assets during the year.
- Sales or exchanges to a relative, as defined under Internal Revenue Code Section 267, do not qualify.
- A farm dwelling or farm home site is not property used in the farming business.
- For a sale of ownership interests in a farming corporation, partnership, or other entity, you must have owned at least 10 percent of the entity before the sale or exchange.
What you'll need
To complete the worksheet, have these figures available:
- Your net long-term capital gain from farm assets.
- The gain included in Oregon income, or the gain from the Oregon column of Form OR-40-N or Form OR-40-P, line 13S.
- Your Oregon taxable income from Form OR-40, line 19; Form OR-40-N, line 45; or Form OR-40-P, line 43.
How to file
Do not include Worksheet FCG with your return. Keep it with your tax records.
After completing the worksheet, enter the tax from line 9 on your Oregon return:
- Form OR-40, line 20.
- Form OR-40-N, line 46.
- Form OR-40-P, line 44.
Check the box on your Oregon return labeled “Worksheet FCG.”
Common mistakes
- Attaching the worksheet to your return. The form says to keep it with your tax records instead.
- Forgetting the return checkbox. Check the box labeled “Worksheet FCG.”
- Entering a negative amount on line 5. If line 3 is more than line 4, enter 0.
- Claiming the reduced rate for an excluded transaction. Sales or exchanges to a relative, as defined under Internal Revenue Code Section 267, do not qualify. A farm dwelling or farm home site is not considered farming business property.
- Overlooking an overall net loss. A net loss from sales or exchanges of all types of assets during the year means you do not qualify for the reduced rate on farm asset sales.
Questions people ask
What reduced rate does the worksheet use?
Line 8 applies a 5 percent rate to the smaller of your qualifying gain on line 3 or your Oregon taxable income on line 4. Line 9 adds that amount to the Oregon tax on your modified taxable income.
What kinds of farming activities are included?
The form lists activities such as raising crops; raising or selling livestock, poultry, and honeybees; dairying; stabling or training equines; and growing and harvesting cultured Christmas trees or certain hardwood timber. It also includes other agricultural or horticultural activities and animal husbandry. Growing and harvesting other marketable tree species is excluded.
Can selling an ownership interest in a farming entity qualify?
Yes. The form allows qualifying sales of ownership interests in a farming corporation, partnership, or other entity. You must have held at least a 10 percent ownership interest before the sale or exchange, and the transaction must meet the form’s requirement to end all your ownership interests in the farming business or farming property.
Can I qualify if I had an overall net loss from asset sales?
No. If you had a net loss from sales or exchanges of all types of assets during the year, you do not qualify for the farm liquidation reduced rate on farm asset sales.