OR-PTE-PY: Schedule OR-PTE-PY, Qualified Business Income Reduced Tax Rate Schedule for Oregon Part-year Residents (2024)
Oregon · Oregon DOR · Used for tax years 2024
Schedule OR-PTE-PY is Oregon’s qualified business income reduced tax rate schedule for part-year residents. It reports qualifying business information and calculates tax to determine whether the reduced rate is more beneficial.
Who files this form
Schedule OR-PTE-PY is for Oregon part-year residents seeking the qualified business income reduced tax rate for 2024. To qualify, you must complete both sections and submit the schedule with Oregon Form OR-40-P.
Section A covers qualifying sole proprietorships, S corporations, and partnerships. List only businesses that qualify. The form refers to instructions for more information about qualification, but those instructions are not provided here.
If Section A, line 7 is zero or less, you cannot use the reduced tax rate.
When it's due
For tax year 2024, the form lists April 15, 2025 as the original return due date, or October 15, 2025 if filing an extension.
You cannot amend to make or revoke the reduced-rate election after filing your original return unless you file the amended return on or before the applicable date above.
If you amend after the return due date, including extensions, you must use the tax on Section B, line 16a, even if line 18a is lower.
What you'll need
Have the following forms and information available:
- Oregon Form OR-40-P, including taxable income on line 43, the Oregon percentage on line 35, and any depreciation addition on line 30F or depreciation subtraction on line 33F attributable to qualifying businesses.
- Your name and Social Security number, plus your spouse’s name and Social Security number if filing jointly.
- For each qualifying business: name, FEIN, business code or NAICS code, entity type, number of qualifying employees, nonpassive income or loss, Section 179 expense, and Oregon PTE-E tax deducted.
The form also directs you to the instructions for tax calculations, including Tax rate chart B. Those instructions are not included in the supplied text.
How to file
- Complete Section A with qualifying business information and calculate line 7. If it is zero or less, return to Form OR-40-P, line 44, and complete the rest of that form.
- If Section A, line 7 is greater than zero, enter it on Section B, line 2b. Complete each applicable line of the tax worksheet.
- If Section B, line 16a is less than line 18a, enter line 19a on Form OR-40-P, lines 44 and 45, and check box 44c. Do not multiply the tax by the Oregon percentage again on line 45.
- If line 18a is less than line 16a, enter line 17a on Form OR-40-P, line 44, and complete the rest of the return.
- Submit the original schedule, not a photocopy, with Oregon Form OR-40-P.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Submitting a photocopy. The form says to submit the original.
- Leaving out the schedule or a required section. To qualify, complete both sections and include the schedule with Form OR-40-P.
- Listing businesses that do not qualify. Section A says to list only qualifying businesses.
- Using the reduced rate when Section A, line 7 is zero or less. The form says you cannot use it in that case.
- Entering negative amounts where zero is the minimum. Section B, lines 3a, 5a, and 9b say not to enter less than zero.
- Applying the Oregon percentage twice. When line 16a is less than line 18a, do not multiply the tax by the Oregon percentage again on Form OR-40-P, line 45.
- Trying to make or revoke the election after the amendment deadline. The form limits when you may change the election after filing your original return.
Questions people ask
Which business types can I list?
Section A lists sole proprietorships (SP), S corporations (SC), and partnerships (P). Only list businesses that qualify. The form refers to instructions for further qualification details.
What if my total qualifying income is zero or negative?
If Section A, line 7 is zero or less, you cannot use the reduced tax rate. Return to Form OR-40-P, line 44, and complete the rest of the form.
Will the reduced rate always give me a lower tax?
No. Section B compares the tax on lines 16a and 18a. If line 18a is lower, the form says the reduced rate is not more beneficial. Enter line 17a on Form OR-40-P, line 44, and complete the rest of the return.
Do I need to attach this schedule to my return?
Yes. The form requires you to include Schedule OR-PTE-PY with Oregon Form OR-40-P and to submit the original schedule, not a photocopy.
Can I change my election with an amended return?
For tax year 2024, you may make or revoke the election after filing your original return only by filing an amended return on or before April 15, 2025, or October 15, 2025 if filing an extension. If you amend after the due date, including extensions, you must use Section B, line 16a, even if line 18a is lower.