When it comes to conducting a 1031 exchange in Oregon, there aren't many unique rules that differ significantly from the general federal guidelines set by the IRS under Section 1031 of the Internal Revenue Code. Oregon's state taxes follows the federal treatment for 1031 exchanges, meaning that if your exchange qualifies for deferral under federal rules, it will also qualify at the state level. However, it's important to keep in mind that Oregon does have a state income tax. This means that while you may defer federal taxes on the gain, you should consider the impact of state taxes.
The Combined Rate accounts for Federal, State, and Local tax rate on capital gains income, the 3.8 percent Surtax on capital gains and the marginal effect of Pease Limitations (which results in a tax rate increase of 1.18 percent).
Release dates for tax bracket inflation adjustments vary by state and may fall after the end of the applicable tax year. Oregon allows a deduction for your total federal tax liability from your federal return after adjusting for certain federal tax credits. Standard deduction or personal exemption is structured as a tax credit. The personal exemption credit is not allowed if federal AGI exceeds $100,000 for single filers or $200,000 for MFJ.
