Why would my Oregon Passive Activity Loss be different than my federal Passive Activity Loss?

Oregon generally adopted the federal passive loss rules but there are some differences in passive losses for Oregon.

How to compute passive losses for Oregon

1. Modify the federal passive losses by the applicable additions and subtractions listed below:
   • Additions:
     • Interest or dividends on obligations of another state
     • Depletion in excess of the adjusted basis of property
     • Gain on voluntary or involuntary conversions or exchanges of Oregon property reinvested outside Oregon when no election is made to defer it
   • Subtractions:
     • Gain or loss on the sale of public utility stock where dividends were reinvested
     • Interest or dividends on obligations of the U.S. government
     • Wages you didn't deduct from federal taxable income because you claimed the federal work opportunity credit
     • Interest or dividends on obligations of Oregon political subdivisions
   • Additions or subtractions
     • Differences in depreciation
     • Differences in gain or loss from basis differences in the sale of an asset
2. Apply the federal passive loss limitations to the Oregon passive loss you computed in step 1 above. This will determine how much is deductible for Oregon. To apply the income limitations, use federal AGI before modifying for Oregon additions or subtractions.

Enter the Oregon activity loss you calculated using the steps above. Be sure to keep a record of your calculations for the Oregon Passive Activity Loss with your tax records.